According to Koyfin data, UPS stock had its worst single-day drop since going public in 1999|Mike Mozart|CC BY 2.0
The United Parcel Service Inc (UPS) shares plunged over 14% on Thursday after the logistics giant issued weak full-year revenue guidance and shared its plans to slash 50% of Amazon deliveries by late 2026.
According to Koyfin data, UPS stock had its worst single-day drop since going public in 1999.
Fourth quarter revenue hit $25.3 billion, lower than $24.9 billion the year before and slightly below estimates of $25.42 billion. Despite a positive outlook, the company’s outlook dulled the impact of its strong Q4 results.
It forecast that revenue for 2025 will drop to $89 billion, below Wall Street expectations for the upcoming year and down from $91.1 billion in 2024.
Reasons for the breakup with Amazon
According to CEO Carol Tome, Amazon is not its “most profitable customer” and accounted for just 11.8% of UPS’s revenue in 2024.
UPS is focusing on higher-margin deliveries, including healthcare logistics. It is also trying to offset declines by implementing cost-cutting efforts, which included closing 11 buildings last year (expected to save the shipping giant $1 billion).
The company’s stock still dropped over 20% in 2024, lagging behind competitor FedEx’s shares, which have gained 10.5%.