Profit Pregame

The Shipping Showdown Has Officially Begun – Here’s The Best Way to Play It

Cyber Monday is over – but this profit opportunity is just beginning…

The shipping showdown is happening now.

What’s happening?

Following the most successful Cyber Monday performance to date, another battle has begun – the shipping showdown.

Black Friday and Cyber Monday raked in a record amount of one-day sales this year – specifically online sales – so, now, the torch has been passed to delivery services to make the magic happen. FedEx and UPS’s delivery rivalry is officially in the spotlight as they gear up for this busy holiday season.

Here’s a quick breakdown of what we saw…

Where’s the money?

Cyber Monday was projected to be the largest online shopping day in U.S. history, and it delivered just that – a 15.1% increase over last year, coming in at $10.8 billion for the day. But the same couldn’t be said for brick and mortar. RetailNext, a company specializing in in-store analytics, reported that brick and mortar stores sales were 42.3% over the weekend than typical foot traffic.

So, all that money spent over the weekend and into Monday was mainly in the e-commerce sector, meaning shipping companies are about to become flooded with business. And it’s no surprise that the two big names leading the charge are FedEx and UPS. But the question has officially become – which delivery company is the better investment?

At first glance, FedEx shares seem to be the obvious choice. The stock is up almost 28% in the last three months, with 71% of analysts rating the stock a buy. On the other hand, UPS is only up 3.5% over the same time frame and has analysts unsure and divided with a 54% “buy rating.” So, it would seem pretty apparent that FedEx would be the stock to buy.

But before you follow the crowd of investors flocking to this stock – here’s what you need to know…

How do I get some?

It’s easy to assume that FedEx, with its strong performance and even stronger buy rating, would be a no-brainer buy. But when it comes to the shipping war, I actually like UPS better here. And it’s for a couple of different reasons…

I see FedEx closing in on their 52-week high, which is always a red flag when it comes to my style of trading. On top of this, I believe with the influx of business, the company is about to see; UPS can easily take out their current 52-week high.

So, despite FedEx outperforming UPS over the year, I believe that UPS has a more solid footing in the market and as a company. And that’s why I’ll be looking to cash in on the online shopping boom via UPS, and I think you should too.

In the Spotlight: An update on the Salesforce-Slack acquisition

Recently, we talked about the Salesforce-Slack acquisition that was in the works. And the numbers are officially out. Salesforce is buying workplace messaging app Slack for $27.7 billion, marking the largest acquisition in the San Francisco-based cloud-based company’s history. According to the terms of the agreement, Slack shareholders will receive $26.79 in cash and 0.0775 shares of salesforce stock per Slack share.

This move by Salesforce was a big one seeing that Salesforce, which sells cloud-based customer relationship management software and other enterprise applications, can further build out the services it can offer to its customers. On top of this, Slack’s customer base has exploded over the years. Now hosting 130,000 paid customers, the company has showed a 30% growth pattern year-over-year. An acquisition from an enterprise software and services giant like Salesforce could help accelerate Slack’s user growth even more.

So, frankly, it’s a win-win for both companies. But Salesforce has its eye set on something bigger than just a profitable deal. It’s looking to go head to head with the industry giant Microsoft Teams. So, needless to say, I’m excited to see where this stock goes next.

With that said, the deal is expected to close in the second quarter of Salesforce’s fiscal year in 2022, so I’ll be keeping a close on what comes next. And I’ll be sure to keep you updated.

Debuting Today…

As much money as there is to be made by trading off of big names like the two above, one of the best ways I know to multiply an investment of any size is through angel investing.

These kinds of investments used to only be reserved for the ultra-wealthy, but now, everyday people are able to back little-known startups before they release their IPO.

These people can get in for as little as a few hundred dollars, right before these small companies explode in value, and today’s your chance to learn how to invest right along with them.

World-famous angel investing expert David Weisburd explains it all in his new presentation, right here.

Community Tips

0 Comments
Inline Feedbacks
View all comments