Sozzi Says Fedex Price Increases Not Good For Online Retailers (FDX)

Wall Street Strategies equity analyst Brian Sozzi tweeted that the recent price increase by FedEx FDX will hurt online retailers such as Amazon.com AMZN and Overstock OSTK. Earlier this morning, Fedex announced it will raise shipping rates for FedEx Express by an average of 3.9% for both U.S. domestic and export services, starting January 3, 2011. The full average rate increase of 5.9% will be partly offset by cutting the fuel surcharge by two percentage points. This potentially could've hurt the holiday shopping season for companies like Amazon and Overstock, who rely heavily on free or low priced shipping to sell their products to consumers.