The transport of goods is expected to decrease as consumers save their funds to prepare for rising food and energy prices.
American The share price of transport giant Fedex fell by more than 24 percent on Friday. At the same time, the company’s market value lost 12.5 billion dollars.
It was the company’s largest price drop in one day ever.
The share price fell to its lowest level since July 2020.
The reason Fedex’s advance information on the first quarter of its fiscal year and the forecast of the weakening of the transport market contributed to the price drop.
At the same time, the company’s outlook for the coming year 2023 increased general concerns that global demand will fall and a recession will come.
The US stock market, whose development indicates the course development of the whole world, has been in decline in the past week.
One of the reasons has been the high inflation figures, which the central bank, the Federal Reserve, has promised to tame with the necessary interest rate increases.
The Fed’s next interest rate meeting will be held on Wednesday.
Read more: The stock markets collapsed this week due to US inflation figures – OP warns that we can see a rumble next week as well
Fedex the share price fell to around $155. The dollar and the euro are currently roughly equal.
Other global transport giants have also predicted in their forecasts that saving consumers’ money and directing it to key living expenses such as energy and food can reduce the demand for goods transport.
Analysts estimate that Fedex’s price drop can largely be explained by the company’s internal problems.
New CEO Raj Subramaniam was appointed to his position last March, and he has not yet succeeded in convincing investors that the missteps of previous years have been corrected and the company’s direction has been reversed.
“We have noticed that investors are very skeptical about the management’s ability to achieve the long-term goals they have set,” said an anonymous analyst from the Swiss Credit Suisse.
CEO Subramaniam said in an interview with the CNBC channel on Thursday that he believes the economy will sink into a global recession.
#Market #Transport #giant #Fedexs #problems #foreshadow #coming #recession #exchange #rate #fell
