Even the biggest companies are not immune to stock crashes. Interestingly, the grander the scale of the company, the steeper its fall. The businesses undergo stress tests in such periods. On the plus side, a plunge in shares gives some enterprises an opportunity to attract publicity. In particular, FedEx, the American delivery giant, hit the headlines as its shares plummeted by record 13%. The plunge was triggered by the company’s forecast. The FedEx management predicted that the revenue may decrease in the coming year. It was really thoughtful of the company to warn its investors about a possible decline. After the forecast had been unveiled, FedEx shares depreciated by 12.9% on the New York Stock Exchange. It was the steepest fall in the past ten years. Last time such a plunge was seen during the financial crisis, on December 9, 2008. On that day, FedEx shares crashed by 14.5%. The main reason for the negative outlook is the lingering trade conflict between the United States and China. FedEx CEO Frederick Smith said that the company’s performance was weighed down by the intensifying trade tensions and uncertainty. As a matter of fact, the delivery specialist has already been involved in the trade conflict, as the Chinese authorities accused FedEx of illegally delaying more than 100 Huawei shipments.
