After the Bell: FedEx warns global recession to affect revenue; shares plummet
INDIANAPOLIS (WISH) — FedEx had quite a warning to its shareholders Friday.
The company said a global recession will cause it to miss its yearly revenue target by $500 million. The company says a slowing economy will hurt demand for packages worldwide.
FedEx shares on Friday fell 22%, the biggest one-day drop in its history.
FedEx says its earnings this quarter will be down 40%. It’s cutting costs by closing stores and freezing hiring.
The news also hit the rest of the U.S. markets hard.
President Joe Biden has released the first-ever framework on regulating cryptocurrency in the United States.
The framework talks about how to make borderless transactions easier, and how to crack down on fraud in the digital space. It calls on the U.S. Securities and Exchange Commission to do some things, but doesn’t issue any mandates yet.
No electrification for 2024 Mustang
Ford recently showed off the 2024 Mustang, which that will remain gas-powered for now, with no electrification at all.
Jim Farley, chief executive officer of Ford, says the move makes good business sense.
However, most auto companies are turning to electric, and that could put the Mustang in a segment by itself.