By Ion Jauregui – Analyst at ActivTrades
Amazon (NASDAQ: AMZN) has taken a strategic step by partnering with FedEx (NYSE: FDX) to handle part of the delivery of its bulkier packages. The multi-year agreement, signed in February, marks a significant shift in the logistics chain of the e-commerce giant, which until now had relied less on FedEx, especially after years of tension between the two companies.
This long-term contract strengthens Amazon’s position by diversifying its distribution network and allowing it to reduce operational costs compared to its other major partner, UPS (NYSE: UPS). The news comes at a critical time for UPS, which recently announced 20,000 job cuts and the closure of 73 logistics centers. These measures respond to a sharp decline in parcel volumes from Amazon, one of its key clients.
Recent Financial Results:
Amazon closed 2024 with net sales of $638.0 billion, an 11% increase from 2023. Its net income doubled, reaching $59.2 billion, while its cloud services arm, AWS, generated $107.6 billion in revenue and $39.8 billion in operating income.
FedEx reported $22.2 billion in revenue for the third fiscal quarter of 2025, with adjusted net income of $1.09 billion and adjusted EPS of $4.51.
UPS recorded $91.1 billion in revenue in 2024, with a net income of $5.78 billion — a 13.8% decrease year over year. The company also announced it expects parcel volume from Amazon to drop by more than 50% by mid-2026.
Amazon’s decision appears to pursue two clear goals: increasing control over its logistics chain and optimizing last-mile delivery costs. With an increasingly robust transport network and deals like the one with FedEx, the Seattle-based giant continues to reduce its reliance on third parties while strengthening its ability to manage demand spikes more efficiently.
For FedEx, the agreement represents an opportunity to regain ground lost to direct competitors and reestablish itself as a key player in e-commerce logistics. Meanwhile, UPS will need to rethink its strategy to adapt to an environment increasingly shaped by efficiency, automation, and margin pressure.
Amazon Technical Analysis
Since late 2023, Amazon has been trading in a bullish channel, reaching an all-time high of $242.52 in January. The stock then pulled back slightly during the first week of April, creating a new support level around the same area on April 21. Yesterday’s session opened quietly, continuing the bullish gap from the day before. The RSI shows a high overbought level at 67.98%, which could signal a correction toward the point of control (POC) near $188. The moving average crossover on April 16 reinforced a bearish trend, suggesting a possible sideways movement between $222 and the lows of $162. If the price reaches the upper range again, it may face resistance unless Amazon’s online retail performance improves by the end of the quarter.
In a sector where speed, cost-efficiency, and adaptability are key, Amazon once again demonstrates its ability to stay ahead of the curve.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.
Amazon (NASDAQ: AMZN) has taken a strategic step by partnering with FedEx (NYSE: FDX) to handle part of the delivery of its bulkier packages. The multi-year agreement, signed in February, marks a significant shift in the logistics chain of the e-commerce giant, which until now had relied less on FedEx, especially after years of tension between the two companies.
This long-term contract strengthens Amazon’s position by diversifying its distribution network and allowing it to reduce operational costs compared to its other major partner, UPS (NYSE: UPS). The news comes at a critical time for UPS, which recently announced 20,000 job cuts and the closure of 73 logistics centers. These measures respond to a sharp decline in parcel volumes from Amazon, one of its key clients.
Recent Financial Results:
Amazon closed 2024 with net sales of $638.0 billion, an 11% increase from 2023. Its net income doubled, reaching $59.2 billion, while its cloud services arm, AWS, generated $107.6 billion in revenue and $39.8 billion in operating income.
FedEx reported $22.2 billion in revenue for the third fiscal quarter of 2025, with adjusted net income of $1.09 billion and adjusted EPS of $4.51.
UPS recorded $91.1 billion in revenue in 2024, with a net income of $5.78 billion — a 13.8% decrease year over year. The company also announced it expects parcel volume from Amazon to drop by more than 50% by mid-2026.
Amazon’s decision appears to pursue two clear goals: increasing control over its logistics chain and optimizing last-mile delivery costs. With an increasingly robust transport network and deals like the one with FedEx, the Seattle-based giant continues to reduce its reliance on third parties while strengthening its ability to manage demand spikes more efficiently.
For FedEx, the agreement represents an opportunity to regain ground lost to direct competitors and reestablish itself as a key player in e-commerce logistics. Meanwhile, UPS will need to rethink its strategy to adapt to an environment increasingly shaped by efficiency, automation, and margin pressure.
Amazon Technical Analysis
Since late 2023, Amazon has been trading in a bullish channel, reaching an all-time high of $242.52 in January. The stock then pulled back slightly during the first week of April, creating a new support level around the same area on April 21. Yesterday’s session opened quietly, continuing the bullish gap from the day before. The RSI shows a high overbought level at 67.98%, which could signal a correction toward the point of control (POC) near $188. The moving average crossover on April 16 reinforced a bearish trend, suggesting a possible sideways movement between $222 and the lows of $162. If the price reaches the upper range again, it may face resistance unless Amazon’s online retail performance improves by the end of the quarter.
In a sector where speed, cost-efficiency, and adaptability are key, Amazon once again demonstrates its ability to stay ahead of the curve.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.