Originally Posted by Shaman

If you guys want to engage in some kind of political circle jerk I will politely decline to join you. My post was about how Fedex is run and the source of its problems.

Originally Posted by Nordhavn

No political circle jerk, just some of my .02. The FED is going to continue to raise rates to slow demand. This is how they will kill inflation and they have said as much. They say nothing of Washington's irresponsible spending so they will screw the little guy. Wages will remain stagnant and people are going to stop spending money. As for the corporate side of things, companies are going into cost cutting mode as we speak. The stock market will correct and we will have massive pain for a long while. For you to pretend that we are not ALREADY in recession is a little puzzling. By classical definition, we are already in it and have been since mid summer. Good luck!

Originally Posted by NotMrNiceGuy

Just to further understand your point, why are UPS and DHL not experiencing the same difficulties? Do you chalk that up our greater presence in Asia? Something else? Just curious since UPS did not change expectations and that was less than two weeks ago.

Originally Posted by Nordhavn

They are not exactly the same type of corporations. Each one has their own sets of strengths and weaknesses. All three hit the jack pot the last 2 plus years with the lockdowns and lack of lift from the commercial passenger carriers. That gravy train will eventually run out and they will all have to adapt to the new economy where lots of people don't have the disposable income they once did due to inflation, wage stagnation, and cut backs. We have serious problems in this country and Fedex was one of the first to signal this very fact. You may argue the timing of Raj's press appearance and the affects it will have on contract negotiations and those are very fare points but to say that DHL and UPS are not experiencing the first ripples is unfounded in my opinion. The Tsunami is coming ladies and gentlemen so please prepare your own houses.

Originally Posted by PurpleToolBox

Are you so sure? UPS released 2Q 2022 earnings on July 26 of this year and they were very profitable. In fact, they even reaffirmed full-year guidance and decided to buy back $3B worth of stock. That was 7.5 weeks ago.

Originally Posted by Shaman

Pure nonsense.

Fedex is a proxy for global supply chains which are in the midst of a massive shift. From a JIT model relying on super long supply chains to a more localized inventoried system. Covid only ripped the scab off. China's population is rapidly graying and is estimated to be half of what it is today by 2050.

The analyst's assessment of company management couldn't be more spot on. This company is extraordinary mismanaged. It's full of platitudes and sloganeering but when it comes to delivering superior service it is secondary to squeezing more loot out of the operation to give to stockholders. Short sighted garbage decisions like increasing dividends and stock buy backs indicate that there is no better use of that capital to grow or improve the business. That's not building a better product or service that's managing a decline.

I've never seen a recession where asset prices continue to remain high, people seem to have a surplus of cash- and unemployment remains at all time lows. Saying it is so doesn't make it so.

Originally Posted by hercretired

I own FDX stock and believe in the company. With that said, the stock dropped 21% Friday. Any speculation on this? Typical wall street over reaction ?

Thanks guys

https://finance.yahoo.com/quote/FDX?....tsrc=fin-srch