FAST FIVE: Things Are Starting To Move Fast: FedEx Tumbles After Preannouncing Dismal Results For 2nd Time In 2 Weeks
Overnight, AMD stunned investors when it preannounced shockingly bad revenue and margin numbers, making a mockery of its own guidance from August, and signaling that between then and now – i.e., September – the global economy fell off a cliff.
In August, AMD saw Q3 margin of 54%; today it cut it to 50% In August, AMD saw $6.7BN revenue, today it cut it to $5.6BN In September the global economy imploded – zerohedge (@zerohedge) October 6, 2022 The result pummeled AMD stock, hammered its chip sector peers and has nuked the broader Nasdaq which was down 3.5% at last check.
But AMD wasn't the only one to indicate that the bottom fell off the global economy in September: moments ago Fedex stock also plunged after Reuters reported that the division of the global logistics and freight giant that handles most of the company's e-commerce deliveries plans to lower volume forecasts because its customers plan to ship fewer holiday packages, according to an internal memo obtained by Reuters.
“We expect there to be downward adjustments to volume forecasts,” Paul Melander, a FedEx Ground senior vice president said in a message to the unit's delivery contractors earlier this week.
while the broader market was trading at session lows because between tech and logistics both in free fall, the only thing that can save the global economy – if only for a few months, of course – at this point is a powerful blast of either fiscal or monetary stimulus.