After shipping giant FedEx released new forecast details Friday, the company's FedEx Corp stock saw share prices plunge amid fears of a slowdown.
Companies and investors are anxiously planning a possible slowdown in global demand amid rising inflation going into the holiday shopping season.
The news puts even more pressure on the company's new Chief Operating Officer, Raj Subramaniam, as he takes on a company recovering after a volatile period of months.
FedEx Corp stock dropped 24% during Wall Street trading on Friday.
Helane Becker, an analyst with Cowen, said, "We suspect that headwinds from an inflation-fatigued U.S. economy, a resource-constrained European economy, and second-order effects from lockdowns in China proved too much to overcome."
Analysts had also noted several internal issues with the company that has spooked investors before and after Subramaniam was brought in earlier this year to try and smooth out worries.
Credit Suisse analysts released an assessment that said, "We have noted high levels of investor skepticism directed at management's ability to reach its long-term targets. With earnings misses like this, that skepticism seems increasingly warranted."
