UPS shares hit three-month low on worries e-commerce is cooling

UPS is reserving planes and other equipment needed for the expected surge

United Parcel Service shares fell to a three-month low on Tuesday on worries that growth from the pandemic-fueled e-commerce boom may be fading.

The company said second-quarter domestic volume fell 2.9 per cent, with ground – composed largely of e-commerce deliveries – dropping 4 per cent versus the 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 9.3 per cent at $190.32 in midday trading, its lowest price since late April.

UPS has been a key beneficiary of the pandemic shift to