In the last year, United Parcel Service (UPS) failed to recover from a downtrend. Last week, UPS stock broke down, falling 15.55% and closing at $114.23. The package delivery service unexpectedly announced an agreement with its biggest customer. This would result in a volume loss of over 50% by the second half of 2026.
UPS likely lost its business to Amazon (AMZN), which has its internal delivery service. On the earnings call, CEO Carol Tomé said that Amazon was not UPS’s most profitable client.
UPS stock is in oversold territory, trading at prices not seen in several years. To offset the business loss, UPS said it would cut $1 billion in costs over several years.
UPS may easily re-invest $1 billion to fuel its international growth.
In the gaming sector, Electronic Arts (EA) shares traded below $116 last week before recovering to around $123. EA warned that sales of two game titles, EA Sports FC 25 and Dragon Age, would not meet expectations. The weak net bookings are now in the range of $7 billion – $7.15 billion. This is down from a prior range of $7.5 billion – $7.8 billion.
EA’s games are resilient. Investors may wait for EA stock to dip again before starting a position.
