Why FedEx is under pressure

Financial Performance & Challenges - FedEx faces a $600 million negative impact from the grading of its MD11 planes and weakness in its freight division [1] - JP Morgan and other analysts are raising their price targets for FedEx, praising the quarter's performance [2] - FedEx's freight segment experienced a 2% revenue decrease and a 4% drop in average daily shipments [4] Strategic Initiatives & Market Dynamics - FedEx is benefiting from increased pricing power, higher fuel surcharge that began on Cyber Monday, and improving operations in Europe [3] - US tariffs are changing trade flows, with FedEx capitalizing on decreasing China to US volumes and increasing intra-Asia traffic [3] - FedEx is gaining market share, with about half of its revenue growth coming from B2B gains and strength in BTOC [5] - The administration's crackdown on non-US truck drivers and illegitimate trucking schools could be a tailwind for FedEx rates [4] - FedEx is spinning off its freight division and separating trucking and e-commerce businesses [7]