Key Points
Amazon.com (NASDAQ: AMZN) launched its Amazon Supply Chain Services (ASCS) on October 19, 2023, posing a significant threat to logistics companies like GXO Logistics (NYSE: GXO). Following the announcement, GXO’s shares plummeted nearly 13% by 1:30 p.m. on the same day.
ASCS aims to offer Amazon’s extensive logistics network—including freight, distribution, fulfillment, and parcel shipping—to businesses of all types. Major enterprises like 3M, Procter & Gamble, and American Eagle have already begun utilizing Amazon’s freight and shipping services, intensifying competition for GXO, which typically secures multi-year contracts in this market.
GXO is scheduled to report its first-quarter earnings on October 20, 2023, after the market closes, with an earnings call to follow the next day. Analysts are expected to raise questions regarding the impact of ASCS on GXO’s operations.
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