UPS

AI Research

Amazon Volume Exit Drives -18% Month Drop → H2 2026 Targeted as Turnaround Inflection Point

UPS stock declined 18% over the past month as the company transitions away from low-margin Amazon delivery volume, with management implementing facility closures and a $150,000 driver buyout program amid Teamsters union tensions. BofA lowered its price target to $112 from $118 on March 6, and FedEx has now surpassed UPS in market capitalization, reflecting investor skepticism about the turnaround timeline. The stock trades at $97.40 with a 6.7% dividend yield, and management targets H2 2026 as the inflection point, citing improving revenue per piece in the U.S. business as an early positive signal.

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