Facebook Vice President David Marcus is the face of the company's Libra digital currency, but the original driving force was a 26-year-old female corporate-development...Technologyread more
Amazon's new policy for account suspensions doesn't go far enough to protect sellers from potentially unfair and wrongful suspensions, merchants say.Technologyread more
There is no end in sight to the Boeing 737 Max grounding after two fatal crashes, prompting airlines to rethink their growth plans.Airlinesread more
After a year of flooding, Midwest farmers face a stifling heat wave that's spreading across the U.S.Agricultureread more
A quarter of the S&P 500 companies report earnings next week, and that could buffet the market as investors await the July Fed meeting.Market Insiderread more
Moving lots of data to a public cloud over the internet can take months or years. CNBC got an inside look at how AWS transfers data to the cloud for its clients.Technologyread more
Iran's Revolutionary Guard claims a British tanker it still holds, Stena Impero, failed to follow international maritime rules.World Newsread more
"It troubles me that the most important political office in the world is becoming the face of racism and exclusion," Kaeser said in a Twitter post.Politicsread more
Silver's rally could be losing its shine after the precious metal reached its year-to-date high, futures experts warn.Futures Nowread more
Some 40% of Americans would struggle to come up with even $400 to pay for an emergency expense. Just how are so many Americans so short on cash? Blame debt.Personal Financeread more
Amazon hires Trump-allied lobbyist Jeff Miller as battle for Pentagon contract heats up.Politicsread more
Deutsche Bank lowered its rating for UPS shares to hold from buy, saying the company will have to invest more in its delivery infrastructure due to rising online sales.
"We have reduced confidence in UPS' ability to control burgeoning capex, with capital intensity expectations more than doubling as a % of sales in just the last 12mo," analyst Amit Mehrotra wrote in a note to clients Thursday. "We see a lack of positive catalysts to justify a Buy rating. UPS shares won't start working in our view until mgmt. can articulate a sound strategy to strike the right balance between price and volumes vis-a-vis Amazon, and talk more concretely about the long-term/structural capital needs of the business as mgmt. 'leans in' to higher B2C shipments."
UPS shares rose 0.5 percent Friday.
Mehrotra noted that UPS had "significant underinvestment" in building its delivery capability over past decade amid surging e-commerce package volumes.
As a result, he reduced his price target for UPS shares to $115 from $135, representing 9 percent upside to Thursday's close.
UPS shares are underperforming the market this year in part because investors are concerned Amazon may compete more aggressively in the delivery business. The company's stock is down 12 percent year to date through Thursday versus the S&P 500's 1 percent gain.
The Wall Street Journal reported on Feb. 9 that Amazon is gearing up to launch a delivery service for businesses.
An UPS spokesperson sent the following statement when asked for comment on the Deutsche Bank report:
"We don't comment on third party discussions about UPS stock. UPS business strategies have yielded strong growth and industry leading return on invested capital. We are in the midst of a significant investment program designed to further enhance the capacity, capability and efficiency of the UPS network and the overall business. UPS tallied 8% revenue growth in 2017, very strong revenue per piece and annual pricing at 2.9%, which is at the high end of our normal range of 2-3%. There is tremendous opportunity in the B2C market and more growth coming to the sector and UPS, irrespective of how other companies shift strategies."