FedEx stock is crashing and burning. What do you think the future will be?

MrFedEx

Engorged Member
I see now stock analysts are starting to say FedEx should be sold. Saw an article last week and now this. Last week some analysts said either Walmart or Shopify should buy/merge with FedEx. This article says Warren Buffet or Walmart should buy FedEx. Either way, there is now outside pressure from Wall Street starting to float the idea that FedEx should be sold now.

I've asked this before and still am perplexed how UPS can pay their drivers $30-$40 per hour, free healthcare at $0 cost, pension, etc. and they are doing fantastic while FedEx pays their drivers (on average) below $20/hr and contract their Ground delivery out so they don't have to pay any benefits and yet FedEx is a sinking ship. It should be the opposite based on their business models.

Warren Buffett or Walmart should spend billions to buy FedEx: top strategists


Express is a takeover target. I had previously mentioned WalMart, which wants to be more competetive with Amazon. I wouldn't be surprised if negotiations are already underway, because the Waltons have the money to do it.

Sam's Club Express.
 

bbsam

Moderator
Staff member
Something I going on and at a feverish pace. The number of changes at Ground is unreal and in a span of months, not years.

Combine that with some at the top inexplicably jumping ship and I can’t stop watching the fast paced slow motion plane crash. I feel like I’m watching just to see if the pilot is able to pull out of the nosedive.

Maybe I shouldn’t be since I’m a passenger on the plane.
 

bacha29

Well-Known Member
Express is a takeover target. I had previously mentioned WalMart, which wants to be more competetive with Amazon. I wouldn't be surprised if negotiations are already underway, because the Waltons have the money to do it.

Sam's Club Express.
FDX closed today at 150 in half day trading but was downgraded by another bank. If there's no dividend cut and can at least stay range bound for the next 6-8 months I think the worst might be over....But.....if there's a recession and it's mean one then all bets are off and Fat Freddy might have to either acquire of be acquired.
 

btrlov

Well-Known Member
I see now stock analysts are starting to say FedEx should be sold. Saw an article last week and now this. Last week some analysts said either Walmart or Shopify should buy/merge with FedEx. This article says Warren Buffet or Walmart should buy FedEx. Either way, there is now outside pressure from Wall Street starting to float the idea that FedEx should be sold now.

I've asked this before and still am perplexed how UPS can pay their drivers $30-$40 per hour, free healthcare at $0 cost, pension, etc. and they are doing fantastic while FedEx pays their drivers (on average) below $20/hr and contract their Ground delivery out so they don't have to pay any benefits and yet FedEx is a sinking ship. It should be the opposite based on their business models.

Warren Buffett or Walmart should spend billions to buy FedEx: top strategists

ups has a two tier wage system...its pays its Hub "inside" employees less wages and benefits than fedex inside employees. Fulltime teamsters frequently sell out the new born and part time employees at almost every single contract. For example i have a friend that been working part time for 11years!!(not by choice) and when he converts to fulltime his wage is frozen for 4 years...then goes to top pay progression for fulltime, progression in part time is almost non existent beyond the bi-yearly inflation raises.The drivers dominate voting numbers so contracts are set up to favor them(current drivers) as opposed to incoming drivers or other teamster titles.

UPS has a more brutal management at the ground level, this is due to the union presence. For example they would fire 99% of their seasonal workforce without flinching. They layoff many drivers before they "make book" UPS has more volume.. UPS doesn't split off its trucking operation to contractors, it combines both air and ground in single operation. Feeders moves both Air Cans trailers and ground trailers. Hub division unloads/Sorts/Loads trailers and Preload/package division loads the brown trucks... all occurring relatively in close proximity.
 
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fedx

Extra Large Package
ups has a two tier wage system...its pays its Hub "inside" employees less wages and benefits than fedex inside employees. Fulltime teamsters frequently sell out the new born and part time employees at almost every single contract. For example i have a friend that been working part time for 11years!!(not by choice) and when he converts to fulltime his wage is frozen for 4 years...then goes to top pay progression for fulltime, progression in part time is almost non existent beyond the bi-yearly inflation raises.The drivers dominate voting numbers so contracts are set up to favor them(current drivers) as opposed to incoming drivers or other teamster titles.

UPS has a more brutal management at the ground level, this is due to the union presence. For example they would fire 99% of their seasonal workforce without flinching. They layoff many drivers before they "make book" UPS has more volume.. UPS doesn't split off its trucking operation to contractors, it combines both air and ground in single operation. Feeders moves both Air Cans trailers and ground trailers. Hub division unloads/Sorts/Loads trailers and Preload/package division loads the brown trucks... all occurring relatively in close proximity.



I've said this before, if I was a handler or pt employee I wouldn't join the union at UPS. Why would you? You aren't getting union benefits like decent pay, so why join them? Once you become a driver then join them, sure. Don't join them until you get their true benefits. And I don't see how FedEx Ground can't be making tons of profit. They don't provide any benefits and outsources their driving jobs to contractors. It doesn't make sense. Yes, UPS has more freight, but FedEx sounds like a sinking ship while UPS being all union and high pay is doing great.
 

zeev

Well-Known Member
Fedex stock has been a loser going on 2 years it is not coming back it has been going down while the market and UPS is up. Also talked to a Freight driver who said their main job is now pulling Ground trailers, which says not enough Ground contractors. Also many Amazon small package drivers out there are they effecting Ground?
 

Cactus

Just telling it like it is
I see now stock analysts are starting to say FedEx should be sold. Saw an article last week and now this. Last week some analysts said either Walmart or Shopify should buy/merge with FedEx. This article says Warren Buffet or Walmart should buy FedEx. Either way, there is now outside pressure from Wall Street starting to float the idea that FedEx should be sold now.

I've asked this before and still am perplexed how UPS can pay their drivers $30-$40 per hour, free healthcare at $0 cost, pension, etc. and they are doing fantastic while FedEx pays their drivers (on average) below $20/hr and contract their Ground delivery out so they don't have to pay any benefits and yet FedEx is a sinking ship. It should be the opposite based on their business models.

Warren Buffett or Walmart should spend billions to buy FedEx: top strategists
Eh, why not?

FedEx has been just like Walmart on wheels for years.
 

Cactus

Just telling it like it is
You'd suspect wrong.

OK then, give us the real reason. I bet you can’t.

Tell us why Dave left. Health issues, poor performance, lack of subordination to Fred? Dave left when the stock was much higher, and maybe on his own terms...I don't know.

But you just told us you did know. So, spill it, Mr. Genius.

Truth is, you don't know squat.
I knew it. He doesn't have an answer so he ignores these posts. Maybe Fred can tell him why over Christmas dinner.

Pretty soon though Dano will be a Walmart employee anyway once X crashes.
 

slowdriver

Well-Known Member
Just to stir the pot, the custom critical CEO Virginia Addicott just announced her retirement a couple days ago... Seems like something is up..
 

Cactus

Just telling it like it is
Just to stir the pot, the custom critical CEO Virginia Addicott just announced her retirement a couple days ago... Seems like something is up..

maritime+connector.JPG
 

59 Dano

I just want to make friends!
I knew it. He doesn't have an answer so he ignores these posts. Maybe Fred can tell him why over Christmas dinner.

Pretty soon though Dano will be a Walmart employee anyway once X crashes.

I said Dave didn't leave under the circumstances that MF suggested. There's your answer.
 

MAKAVELI

Well-Known Member
Something I going on and at a feverish pace. The number of changes at Ground is unreal and in a span of months, not years.

Combine that with some at the top inexplicably jumping ship and I can’t stop watching the fast paced slow motion plane crash. I feel like I’m watching just to see if the pilot is able to pull out of the nosedive.

Maybe I shouldn’t be since I’m a passenger on the plane.
That big announcement about Express going to overnight-only service with all PTers should hit any day now!
How else do you think FedEx will be "lapping" Amazon in a year?
 
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