FedEx Stock Gains On Tie-Up With Amazon For Large Packages, Retail’s Divided

FedEx (FDX) stock rose nearly 7% on Monday after reports said that Amazon has roped in the company to deliver large packages.

According to reports, the multi-year agreement covers residential delivery of select large packages for Amazon.

Amazon believes that the deal with FedEx, signed in February, gives the online retailer "cost favorability" compared with delivery rival UPS, according to a Business Insider report citing an internal document.

In a statement, Amazon said it isn’t planning to use FedEx to replace the business it still does with UPS, Bloomberg News reported.

UPS announced in January that it had reached an agreement with Amazon, its largest customer, to lower its shipment volumes for the retailer by more than 50% by the second half of 2026.

In a bid to rein in costs, UPS said in April that it would reduce its workforce by approximately 20,000 positions this year and close 73 leased and owned buildings by year-end.

FedEx and Amazon were partners until 2019, when the two companies decided to exit their agreement on residential deliveries as Amazon was building its own delivery network.

“FedEx joins our other third-party partners like UPS and the USPS, that work alongside our own last-mile delivery network to help us balance capacity to best serve customers,” an Amazon spokesperson said to Bloomberg.

Retail sentiment about FedEx on Stocktwits was ‘neutral’ (50/100) territory, while retail chatter was ‘high.’

One user said, “Wouldn't read into this too much. I believe it's a backup plan for peak and specific zones.”

FedEx stock has fallen 17.3% year to date (YTD)

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