Why UPS Stock Was Down 12.8% in Q1 as the S&P 500 Had Its Worst Quarter Since 2022
Shares in UPS (NYSE: UPS) fell by 12.8% in the first quarter of 2025, according to data provided by S&P Global Market Intelligence. The decline comes down to a poorly received fourth-quarter earnings report and mounting evidence of a slowdown in its end markets that could pressure its first-quarter earnings.The fourth-quarter numbers didn't surprise investors as much as UPS' announcement that it would reduce Amazon delivery volume by 50% by the second half of 2026. This is a sizable task given that Amazon deliveries represented 11.8% of UPS' total company revenue in 2024.It's also a task that makes perfect sense to UPS' business strategy. Amazon deliveries tend to be low-margin or even loss-making, as they often are inefficiently packaged and are business-to-consumer (B2C) deliveries that can go to residential addresses that are hard to find or difficult to deliver to.Continue reading
Shares in UPS (NYSE: UPS) fell by 12.8% in the first quarter of 2025, according to data provided by S&P Global Market Intelligence. The decline comes down to a poorly received fourth-quarter earnings report and mounting evidence of a slowdown in its end markets that could pressure its first-quarter earnings.
The fourth-quarter numbers didn't surprise investors as much as UPS' announcement that it would reduce Amazon delivery volume by 50% by the second half of 2026. This is a sizable task given that Amazon deliveries represented 11.8% of UPS' total company revenue in 2024.
It's also a task that makes perfect sense to UPS' business strategy. Amazon deliveries tend to be low-margin or even loss-making, as they often are inefficiently packaged and are business-to-consumer (B2C) deliveries that can go to residential addresses that are hard to find or difficult to deliver to.
