FedEx shares slumped in their worst day ever, closing at the lowest price since early pandemic months, after the delivery giant pulled its forecast, adding to growing fears of a global demand slowdown while piling more pressure on its new chief executive for a quick turnaround.
The company’s preliminary results for the fiscal first quarter saw the stock fall by almost 25% to a session low of $155, the lowest since July 2020 and wiping off about $12.5 billion in market capitalization.
The stock’s fall on Friday surpassed its previous steepest one-day percentage decline of 16.4% on Black Monday in 1987.
The firm’s pessimistic outlook for fiscal 2023 comes amid investor anxiety that aggressive interest rate hikes from the US Federal Reserve threaten to tip the economy into a recession.
FedEx joins other major global logistics firms such as Hong Kong’s Cathay Pacific Airways and France-based transporter CMA CGM in indicating that rising prices are discouraging non-essential retail purchases, with consumers are saving for essentials such as gas and food instead ahead of the holiday season.