Here's Why GXO Logistics Shares Slumped (Hint: It's Amazon Related)

The launch of Amazon.com's (NASDAQ: AMZN) Amazon Supply Chain Services (ASCS) has sent shockwaves through the transportation sector, including companies like UPS and GXO Logistics (NYSE: GXO), with the latter's shares declining by almost 13% by 1:30 p.m today. Amazon's announcement of ASCS reads across as a direct threat to GXO Logistics. In a nutshell, Amazon is offering its existing logistics network to external customers. This includes its "freight, distribution, fulfillment, and parcel shipping capabilities to businesses of all types and sizes."The operative phrase here is "all types and sizes." If UPS is particularly threatened by ASCS encroaching on the small- and medium-sized business market, then GXO Logistics is threatened by ASCS entering the large-enterprise market. Indeed, the press release stated that large enterprises such as 3M, Procter & Gamble, and American Eagle were already using Amazon's freight and shipping services. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool