Wednesday’s Headlines: Amazon Reinstates FedEx, Sending Shares Up
1. Disney saw its stock rise on Tuesday following the release of figures related to its content streaming service Disney Plus, which was the most downloaded app in the U.S. during the last quarter of 2019. As well as being last year’s top-trending Google search term, the Disney Plus mobile app has been downloaded nearly 41 million times in the space of 2 months, bringing the company an estimated $97 million. Disney’s success in streaming looks set to continue in 2020 as it competes with Netflix for dominance. For the full report, read here.
2. The world’s largest airplane manufacturer, Boeing, reported its worst annual net orders in decades on Tuesday, along with its lowest numbers for plane deliveries in 11 years, as its 737 MAX debacle continues. Boeing said on Tuesday deliveries fell by 53% to 380 planes over the whole of last year, allowing European rival Airbus to take the top spot. Analysts estimate that Boeing has been losing around $1 billion a month because of the grounding and it reported an almost $3 billion negative free cash flow in the third quarter. Fourth-quarter figures are due on Jan. 29. Get the full story here.
3. Amazon experienced a stock price drop on Tuesday after informing third-party sellers that they can resume using FedEx’s ground delivery shipping services. Conversely, shipping giant FedEx saw its stock rise nearly 2% by market close yesterday, after it plummeted last month when Amazon temporarily suspended FedEx’s ground delivery for Prime shipments, citing poor delivery performance. Tensions have been rising between the two companies over the past year, with Amazon building up its own delivery network while distancing itself from partners FedEx and UPS. For a complete report, read here.