Amazon shares rose 1.7% in midday trading after UPS announced a major strategic divergence, planning to reduce its delivery volume for the e-commerce giant by half by late 2026.
- The reduction aligns with Amazon's broader strategy to independently control its logistics network and push toward independent delivery capabilities.
- Despite the planned volume reduction, UPS reported strong fourth-quarter 2025 results, with adjusted EPS of $2.38 significantly beating the $2.20 estimate.
- UPS CEO Carol Tomé indicated that 2026 will serve as an "inflection point" for the company's strategy following the completion of the "Amazon glide-down."