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Bernstein Raises UPS Price Target to $128 After Strong Q4 Beat

United Parcel Service, Inc. (NYSE:UPS) is included among the Dividend Champions, Contenders, and Challengers List: 15 Highest Yielding Stocks.

On January 28, David Vernon of Bernstein raised his price recommendation on United Parcel Service, Inc. (NYSE:UPS) to $128 from $125. It reiterated an Outperform rating on the stock. The firm said UPS delivered a very strong Q4 2025 performance and issued 2026 guidance that was broadly in line with expectations. Revenue came in better than anticipated, while margins were weaker than expected. Bernstein argued that the strength of the Q4 beat, combined with where margins exited the year, should be enough to balance out the softer margin outlook.

A January 27 report from Reuters said UPS plans to cut as many as 30,000 jobs and close another 24 facilities in 2026. The company described these moves as part of its ongoing effort to reduce exposure to lower-margin deliveries tied to Amazon, as it shifts its focus toward more profitable parts of the business.

That strategy has been in motion for some time. Early last year, UPS said it would accelerate plans to cut back millions of Amazon deliveries, calling that volume highly dilutive to margins. UPS and rivals such as FedEx have also been navigating softer demand across the broader delivery market.

In 2025, UPS eliminated 48,000 roles, offered buyouts to drivers, and closed 93 locations as Amazon-related volumes continued to decline. The additional cuts planned for 2026 are expected to come mainly through attrition and another round of voluntary buyouts for full-time drivers. According to Chief Financial Officer Brian Dykes, the company does not plan to implement layoffs.

United Parcel Service, Inc. (NYSE:UPS) provides integrated logistics services to customers in more than 200 countries and territories. Its US Domestic Package business includes a wide range of air and ground delivery services across the United States.

While we acknowledge the potential of UPS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UPS and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Unstoppable Dividend Stocks to Buy According to Analysts and 13 Best Long Term Low Risk Stocks to Buy Now

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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We alerted our subscribers, and BTI returned 90% in just 16 months.

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Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

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