UPS shares dive, is eCommerce slowing down?

Published

2 years ago

July 28, 2021

United Parcel Service shares have plunged to a three-month low

The parcel delivery company has again seen its stock plummet with worries that growth from the pandemic-fueled e-commerce boom may be fading.

The company stated that second-quarter domestic volume fell 2.9%, with ground – composed largely of e-commerce deliveries – dropping 4% compared to the year earlier.

The stock was down 9.3% at $190.32 in midday trading, its lowest price since late April.

UPS has seen the benefits of the pandemic shift to online shopping.

Like rival FedEx, it responded to the boom for in-home delivery demand by adding profit-boosting surcharges.

The share price decline came despite second-quarter profit and revenue that topped Wall Street estimates.

“Investors are likely reading this as an indication the pandemic-driven demand trend is slowing,”
Cowen Research analyst Helane Becker said in a client note.

UPS is reserving planes and other equipment needed for the expected surge.

Executives of UPS have confirmed that domestic package volume could be under pressure in the second half of the year as some shoppers return to in-store shopping.

Since Carol Tomé became CEO in June 2020, UPS has been reining in costs and focusing on high-margin packages under her “better, not bigger” strategy.

During the second quarter, UPS reported growth in lucrative air and healthcare shipments

UPS is reserving planes and other equipment needed for the expected surge.

There’s a 50/50 chance of a 2024 recession

Published

4 hours ago

December 5, 2023

ticker NEWS

The economy has been remarkably resilient despite massive pressures – but is that about to change in 2024?

The US economy is in for a sharp slowdown in 2024 as a closely watched survey of top economists foresees stubbornly high inflation, a rise in unemployment and a 50% chance of recession.

#ticker today #money

Money

Tesla insurance sued for ‘inflated’ premiums, judge rules

Published

7 hours ago

December 5, 2023

ticker NEWS

A judge has ruled that Tesla’s insurance unit must face a lawsuit alleging “inflated” premiums.

The decision comes after policyholders claimed the electric car company’s insurance division overcharged them for coverage.

The lawsuit, which was filed by a group of Tesla policyholders, alleges that the premiums charged by Tesla’s insurance unit were significantly higher than market rates for similar coverage.

The plaintiffs argue that Tesla’s insurance division engaged in unfair pricing practices, leading to overpayment by policyholders.

Tesla has not yet commented on the judge’s decision, but the lawsuit raises questions about the transparency and fairness of the company’s insurance pricing.

It also highlights the growing scrutiny on how tech companies enter and compete in traditional industries like insurance.

Money

Elon Musk mocks Paris Hilton’s cookware ad

Published

7 hours ago

December 5, 2023

ticker NEWS

Tech mogul Elon Musk couldn’t resist poking fun at Paris Hilton’s recent cookware ad campaign after her company suspended a mysterious “X” deal.

In a tweet that quickly went viral, Musk quipped that the ad “wasn’t super convincing.”

The tweet came shortly after Paris Hilton’s company, Hilton Home Collection, announced the suspension of an undisclosed partnership, leaving fans and followers speculating about the nature of the collaboration. While the reasons for the suspension remain unknown, Musk’s tweet added a humorous twist to the situation.

Musk’s lighthearted remark sparked a flurry of reactions on social media, with some users joining in on the jest and others expressing curiosity about the nature of the suspended deal. Meanwhile, Paris Hilton herself has yet to respond to Musk’s comment, leaving many wondering if there’s more to the story than meets the eye.