Amazon (AMZN, $1,627.64) brings in-house air shipping, FedEx (FDX, $181.31) says they’re not worried at all
Amazon is fast becoming a player in the logistics and shipping industry, as the company recently expanded Amazon Air to include 50 new planes and several new regional hubs, including a $1.5 billion hub opening in northern Kentucky in 2021.
The move is to handle 26% of the Company’s shipping of online orders through its dedicated air network. In the last quarter, Amazon’s shipping costs jumped to 23% reaching a record $9 billion. For the whole year, the company spent $27 billion.
The in-house shipping can significantly reduce its hefty shipping costs. Currently, Amazon pays UPS or FedEx about $8 or $9 per box. By bringing shipping in-house, this will be reduced to about $6 per box which means even cheaper products along with faster deliveries.
Currently Amazon Air has planes at 21 U.S. airports and it's opening new regional hubs this year in Fort Worth, Texas, Wilmington, Ohio, and expanding one in Rockford, Illinois. In 2021, Amazon will open a $1.5 billion air hub at Cincinnati/Northern Kentucky International Airport where it will have a capacity for 100 planes, double what it has now.
But is this concerning for UPS and FedEx?
FedEx's senior vice president of integrated marketing, Patrick Fitzgerald, said he's not worried at all. He explained that the broad portfolio of FedEx’s business cannot be justly compared with Amazon’s that is just one aspect of its business, which is transportation. In 2018, Amazon represented less than 1.3 % of FedEx’s total revenue. Fitzgerald pointed out that FedEx has 700 planes, while Amazon only has 40.
AMZN sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for AMZN moved above the 200-day moving average on July 08, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 26, 2025. You may want to consider a long position or call options on AMZN as a result. In of 78 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMZN advanced for three days, in of 321 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 284 cases where AMZN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for AMZN moved out of overbought territory on June 30, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 44 similar instances where the indicator moved out of overbought territory. In of the 44 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 70 cases where AMZN's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AMZN turned negative on July 16, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMZN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AMZN broke above its upper Bollinger Band on June 27, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AMZN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.770) is normal, around the industry mean (4.275). P/E Ratio (36.463) is within average values for comparable stocks, (50.904). AMZN's Projected Growth (PEG Ratio) (2.911) is very high in comparison to the industry average of (1.442). Dividend Yield (0.000) settles around the average of (0.088) among similar stocks. P/S Ratio (3.701) is also within normal values, averaging (6.463).
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General Information
a provider of on-line retail shopping services
Industry InternetRetail
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