FedEx made the right decision to part with Amazon, strategist says

Shipping giant FedEx Corporation (NYSE: FDX) “fired”, Inc. (NASDAQ: AMZN) as a customer ahead of the 2019 holiday season, and it was the right move, Broughton Capital managing partner Don Brouhgton said Friday on CNBC’s “Squawk Box.”

FedEx has a partnership with Walmart Inc (NYSE: WMT), a larger retailer than Amazon by total volume, and is looking to boost its online business, Broughton said.

Walmart recognizes the threat of Amazon stealing share and sees FedEx as a key partner, he said.

FedEx may have also realized that Amazon’s incremental interest in its own shipping initiatives would first impact the U.S. Post Office, followed by United Parcel Service, Inc. (NYSE: UPS), Broughton said.

Source: Strategist Says FedEx Was Right To Part Ways With Amazon