Daily news
May 16, 2023

Should you buy stock after FedEx announcement today?

FedEx, one of the world's largest courier delivery services, made a major announcement today that has left investors wondering whether they should buy stock in the company. The announcement was that FedEx will be acquiring ShopRunner, an e-commerce platform that offers free two-day shipping and returns for its members. This move is seen as a strategic move by FedEx to expand its e-commerce capabilities and compete with Amazon. So, should you buy stock in FedEx after this announcement? The answer is not a simple yes or no. There are several factors to consider before making a decision. Firstly, it is important to understand the current state of the stock market. The COVID-19 pandemic has caused significant volatility in the market, and many stocks have been affected. FedEx's stock price has been on a rollercoaster ride this year, with a low of $88.69 in March and a high of $305.66 in September. As of the time of writing, the stock is trading at around $270. Secondly, it is important to consider the impact of the acquisition on FedEx's financials. While the terms of the deal have not been disclosed, it is likely that the acquisition will have a significant impact on FedEx's balance sheet. Investors will want to see how the company plans to finance the acquisition and whether it will have a positive impact on earnings. Thirdly, it is important to consider the competitive landscape. Amazon is the dominant player in the e-commerce space, and FedEx will need to compete with the e-commerce giant to gain market share. While the acquisition of ShopRunner is a step in the right direction, it remains to be seen whether it will be enough to compete with Amazon. In conclusion, whether or not to buy stock in FedEx after the announcement of the ShopRunner acquisition is a decision that should be made after careful consideration of the current state of the stock market, the impact of the acquisition on FedEx's financials, and the competitive landscape. While the acquisition is a positive move for FedEx, it is important to remember that the stock market is unpredictable and that there are no guarantees when it comes to investing.