Amazon.com Stock Rises As Ties with UPS Weaken
Amazons shares for Wednesday closed a notch higher at 0.8% to a total of $663.
This hike was due the company’s efforts to break away from UPS due a hike in their shipping rates. Amazon is in talks with air cargo companies to hire their airplanes on lease so that the company can set up their own freight services as reported by the Wall Street Journal.
Analysts have stated that this might affect UPS to a large extent and "A spat with Amazon is not what you want right here." Amazon is basically looking for another method to combat increased shipping costs where a parcel’s handling cost till the last year was $8 when compared to $6.50 in 2000.
According to the analysts of The Street Ratings, Amazon has been given a C credit rating. The factors that have affected this rating are a combination of positive of negative and positive factors. The company’s positives can be seen in its hike in net income, resilient growth and a concrete financial position. The company’s net income has shown an increase by 118.1% when compared to the same quarter last year. The rise went from -$437.00 million to $79.00 million.