UPS stock fell 14.1% to $114.90 after announcing plans to cut its business with Amazon by 50% by 2026. CEO Carol Tomé explained that while Amazon is UPS’s largest customer, it is not the most profitable due to its dilutive margins. In 2024, Amazon represented 11.8% of UPS’s $91.1 billion revenue. UPS reported a slight revenue increase in Q4 2024 but a 14% decline in net income for the year. Moving forward, UPS aims to insource its Surepost product and implement changes to enhance profitability, targeting $89 billion in revenue for 2025.

Source: https://www.stattimes.com/logistics/ups-to-reduce-amazon-business-by-50-stock-tanks-14-1354361