UPS stock down 50%, targeting higher-margin businesses

United Parcel Service (UPS) has seen its stock drop 50% since 2022, despite a growing demand for its logistics services. The company is now focusing on improving profitability by shifting away from its relationship with Amazon, its largest customer. UPS faced challenges as pandemic-driven demand faded and competition increased. The company has made significant changes, including selling business units and investing in technology, which led to improved financial performance in late 2024. While the decision to cut ties with Amazon may create short-term issues, UPS is positioning itself for long-term strength. The company aims to focus on higher-margin businesses, which could enhance its profitability moving forward.