FedEx stock dropped after Amazon unveiled a new logistics offering that could compete directly with the shipping giant’s core business.

FedEx shareholders in Memphis and beyond took one on the chin Monday after Amazon pulled back the curtain on a sweeping new logistics play. The stock slid roughly 8 to 9 percent in intraday trading, a near 10 percent drop that wiped out billions in market value, just weeks before FedEx’s planned June 1 spin-off of its FedEx Freight business.

Shares of FedEx (NYSE:FDX | FDX Price Prediction) are down 9% to roughly $359 in midday trading Monday, while United Parcel Service (NYSE:UPS) stock is down 10% to about $97. The trigger: Amazon (NASDAQ:AMZN) has officially launched Supply Chain Services as a direct enterprise offering.

Incoming FedEx Freight CEO John Smith outlines the 2026 spinoff strategy, focusing on sustainable LTL fleets and AI-driven logistics.

Amazon Supply Chain Services will open the retail giant's shipping infrastructure to other companies in a direct challenge to shipping companies like UPS and FedEx

Jeffrey Cane/Axios Amazon is offering its distribution, parcel shipping and fulfillment services to outside businesses, not just to those on its marketplace. Why it matters: The $2.9 trillion company is now aiming to be a dominant force in the global supply chain,