Amazon is investing $4 billion to improve rural deliveries after parting ways with UPS

From Nasdaq: 2025-06-06 05:07:00

Amazon (NASDAQ: AMZN) and UPS (NYSE: UPS) are parting ways, with UPS reducing its Amazon deliveries due to low margins. Amazon is investing up to $4 billion to improve rural deliveries and has partnered with FedEx. UPS, on the other hand, is focusing on strengthening its business after a period of weakness.

UPS’ breakup with Amazon could benefit the delivery service in the long run, as it refocuses on higher-margin business. Meanwhile, Amazon is facing increased costs to fill the gap left by UPS. Despite this, Amazon remains popular on Wall Street, while UPS is undervalued with a high dividend yield.

Investors should consider UPS as a potential investment, as the company’s breakup with Amazon could lead to improved margins and business strength. Contrarian, dividend, and value investors may find UPS appealing, especially given its current undervaluation and high dividend yield compared to Amazon.

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Read more at Nasdaq: Is Amazon Paying $4 Billion to Break Up With UPS?