UPS addresses ‘elephant in the room,’ as Amazon accounted for more than $11 billion in 2020 revenue

United Parcel Service Inc.
UPS,
-0.51%
surged 3.7% in morning trading, enough to pace the Dow Jones Transportation Average’s
DJT,
-0.35%
gainers, after the package delivery giant reported earlier better-than-expected fourth-quarter results. In the post-earnings conference call with analysts, Chief Executive Carol Tomé said, “So let’s just address the elephant in the room, which is our largest customer.” Out of 19 million customers, Tomé said Amazon.com Inc.
AMZN,
+0.46%
was the largest, with the ecommerce giant’s share of total revenue rising to 13.3% in 2020 from 11.6% in 2019. With UPS reported total 2020 revenue of $84.63 billion, that indicates Amazon accounted for $11.26 billion in 2020 revenue, up from $8.59 billion a year ago. UPS shares have gained 1.6% over the past three months, while Amazon’s stock has advanced 13.9%, the Dow transports have tacked on 10.8% and the Dow Jones Industrial Average
DJIA,
-0.20%
has climbed 13.4%.

View more information: https://www.marketwatch.com/story/ups-addresses-elephant-in-the-room-as-amazon-accounted-for-more-than-11-billion-in-2020-revenue-2021-02-02

Articles in category: moneyist
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