FedEx Corp (NYSE) – FedEx Corp can increase its profits by $1 billion per year if it leverages its ShopRunner purchaseout and partnership with Microsoft. This will allow FedEx Corp to expand its e-commerce presence to cater to its customers directly and to further its e-commerce reach. Citigroup On Monday, analysts at (NYSE:) said the following.

Report by the brokerage also stated that FedEx could double its stock price in just four years, compared to current levels. It comes amid FedEx’s slowing growth due to an epidemic-fuelled surge in online shipment.

Christian Wetherbee, Citigroup analyst said that FedEx could be ecommerce’s universal shopping cart. He suggested that ShopRunner’s many merchant partners would increase to thousands and FedEx would build a network of millions of customers who would receive free expedited shipping.

FedEx, Memphis, Tennessee, acquired ShopRunner e-commerce platform in 2020 and entered into partnership with Microsoft Corp (NASDAQ:) This year earlier.

According to the analyst, FedEx is able to leverage ShopRunner assets via incremental technology investments made with Microsoft. This will allow FedEx to become a larger part of the checkout experience and improve its sales performance.

Wetherbee stated that consumers are not able to choose which company will deliver the product they purchased online.

FedEx’s March quarter earnings were lower than expected due to labor shortages and Omicron disease. It also said that second-half ground margins would not reach internal targets.

In early trading on Monday, FedEx shares were steady at $208. Their value has fallen nearly 20% since Friday’s closing.