FedEx Freight shares slide as Amazon expands trucking, Cramer keeps bullish view

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FedEx Freight shares slide as Amazon expands

Highlights

FedEx Freight shares drop 4.5% after Amazon announces expansion of trucking services beyond its own network, intensifying competitive pressure.
CNBC Investing Club recently downgraded FedEx Freight to a 2 rating, signaling a hold and preference to add on weakness after a strong post-spinoff rally.
The club raises cash holdings to 12% and trims positions in Eaton and Cardinal Health, preparing for volatility ahead of major IPOs like SpaceX and Anthropic.

FedEx Freight outlook after Amazon trucking move

As reported by CNBC Investing Club, FedEx Freight shares fall 4.5% on Wednesday after Amazon announces plans to expand its trucking services beyond its own network. Jim Cramer says the newly independent company is holding up relatively well despite the added competitive threat and maintains that he still likes the stock.

Cramer argues FedEx Freight is better positioned to unlock value as a standalone company, with management and investment focused specifically on less-than-truckload shipping. He says that business requires dedicated execution, and that the operation had been less effective when it was embedded within FedEx.

Less-than-truckload shipping, the company’s core business, combines shipments from multiple customers on a single trailer rather than moving a full truckload for one client. Although the club remains positive on the long-term case, it recently downgrades the stock to a 2, signaling that it is holding the position and would prefer to add on weakness rather than chase shares after a sharp post-spinoff rally.

Cash raising and AI names shape trading

Broader equity markets are lower on Wednesday as investors assess a consumer price index reading that is largely in line with expectations and comments from President Donald Trump on Iran. Cramer notes that much of the inflation increase comes from energy prices, while rising oil prices and geopolitical tensions continue to complicate sentiment.

The investing club says it has been trimming holdings this week to raise cash to 12% ahead of potential volatility tied to major upcoming deals, including the IPOs of SpaceX and Anthropic. The most recent sales include Eaton and Cardinal Health.

Nvidia shares also fall another 3% as investors continue to free up cash for new listings and AI-related offerings. Cramer says the weakness reflects market dynamics rather than any deterioration in Nvidia’s business, and he continues to view the stock as a long-term holding supported by sovereign AI demand and ongoing infrastructure spending.

He also points to Amazon’s expectation that it will begin generating profits next year from semiconductor investments tied to Nvidia-powered systems, which he sees as evidence that AI spending is increasingly producing real returns for customers. Other stocks discussed in the session’s rapid-fire segment are Cracker Barrel, Cava, Chewy, Casey’s General Stores and Pfizer.

In our earlier coverage of Amazon’s broadened less-than-truckload (LTL) logistics offer, we explained that the company is opening its LTL shipping service to all U.S. businesses, extending delivery beyond its own warehouse network. We also noted the immediate market reaction across the freight sector and the rising competitive pressure this expansion creates for established carriers such as FedEx, UPS, and other major LTL players.

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