Blockchain Edge Data Analytics
Blockchain Edge Data Analytics
So, UPS is dumping Amazon like a bad Tinder date? Fine, whatever. They're claiming it's all about "higher-margin work." Translation: Amazon was squeezing them dry, and they finally wised up.
Shares of UPS stock were tanking this year, down 25%. Multi-year lows? Ouch. But then they pull this Amazon stunt, slash 50% of that volume, and suddenly, BAM! Earnings beat expectations. Adjusted earnings per share of $1.74 versus the expected $1.30? Okay, color me slightly impressed. This Controversial Decision Is Already Paying Off for UPS Stock
But let's not get carried away. One good quarter doesn't erase months of misery. And honestly, "executing the most significant strategic shift in our company's history" sounds like corporate BS bingo. What does that actually mean? Are they pivoting to delivering artisanal dog biscuits to the Hamptons?
And these layoffs... 48,000 jobs GONE? They're saying it's about "broader restructuring and efficiency efforts" on top of the Amazon cutbacks. Right, because firing tens of thousands of people is ALWAYS a sign of a healthy, thriving company. It's a bloodbath, plain and simple. How many families are screwed because of this genius plan?
Then there's the dividend. They're patting themselves on the back for maintaining or increasing it since 1999. Cool story. But what about the elephant in the room? The UPS plane crash in Louisville. Fourteen people dead, twenty-three injured. And now, fatigue cracks found in the plane? Uh, Houston, we have a problem.
Carol Tomé's "note to UPS team members" about the "tragic accident" rings hollow when you're simultaneously bragging about shareholder value. It's like offering condolences with one hand while picking their pockets with the other.
The UPS stock dividend, at $1.64 per share, is being pushed as a sign of financial strength. A "hallmark," they say. But is it really a sign of strength, or a desperate attempt to keep investors from jumping ship as the company juggles a PR nightmare and a potentially crippling safety scandal? I mean, let's be real, a high dividend yield is often a red flag, isn't it?
Speaking of jumping ship, FedEx stock must be looking pretty good right about now to some investors.
They're trying to spin this as a comeback story. The stock jumped 8% after the earnings report. "Investors looked pleased," the article says. Offcourse, they did. Wall Street loves a good "restructuring," even if it means human beings get thrown under the bus.
And the valuation is low, apparently. A price-to-earnings multiple of just under 13. "A compelling long-term investment," they claim. But I'm not buying it. Not yet, anyway. There's too much uncertainty, too much baggage.
What if those "fatigue cracks" turn into a full-blown investigation? What if the economy tanks even harder? What if Amazon decides to build its own damn delivery fleet and puts UPS out of business entirely? Okay, maybe that last one is a bit extreme, but you get my point.
Then again, maybe I'm being too harsh. Maybe this is all part of some master plan that I'm too cynical to understand. Maybe Carol Tomé is secretly a genius, playing 4D chess while the rest of us are stuck in checkers. But I doubt it.