United Parcel Service shares fell to a three-month low on Tuesday on worries that growth from the pandemic-fuelled ecommerce boom may be fading.
The company said second-quarter domestic volume fell 2.9 per cent, with its ground division – composed largely of ecommerce deliveries – dropping 4 per cent compared with a year earlier.
"Investors are likely reading this as an indication the pandemic-driven demand trend is slowing," Cowen Research analyst Helane Becker said in a client note.
The stock was down 8.8 per cent, at $191.21, in early trading, having hit a low of $191, its lowest since late April. It rallied in the afternoon to trade at $194.73 late in the session.
UPS has been a key beneficiary of the pandemic shift to online shopping. Like rival FedEx, it responded to the surge in home delivery demand by adding profit-boosting surcharges.
The share price decline was despite second-quarter profit and revenue that topped Wall Street estimates.