Here’s Why FedEx Corporation (FDX) Fell in Q2

Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 5.33% in the second quarter, compared to the S&P 500’s 10.94% return and the Russell 1000 Value’s 3.79% return. The firm’s stock price performance was volatile, but its confidence in future returns grew as the quarter progressed. Since markets have recovered and portfolio holdings remain high-quality and discounted, the firm believes maintaining its current cautious stance, as reflected in the recent strong results during turbulent times, is prudent, despite not fully matching recent market highs. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its second quarter 2025 investor letter, Longleaf Partners Fund highlighted stocks such as FedEx Corporation (NYSE:FDX). Founded in 1971, FedEx Corporation (NYSE:FDX) provides transportation, e-commerce, and business services. The one-month return of FedEx Corporation (NYSE:FDX) was 7.61%, and its shares lost 20.33% of their value over the last 52 weeks. On July 23, 2025, FedEx Corporation (NYSE:FDX) stock closed at $237.90 per share, with a market capitalization of $56.12 billion.

Longleaf Partners Fund stated the following regarding FedEx Corporation (NYSE:FDX) in its second quarter 2025 investor letter:

“FedEx Corporation (NYSE:FDX) – Global logistics company FedEx was a detractor for the quarter. Despite macro headwinds like continued tariff threats and weak demand for higher value shipping, the company demonstrated resilience. The impending Express and Freight separation is expected to unlock value by providing greater flexibility and accountability, addressing the market’s undervaluation of Freight vs. peers and increasing capital discipline at Express. We were deeply saddened by the passing of Founder and Chairman Fred Smith. A legendary figure, he built FedEx into an industry giant through visionary leadership and brilliant strategic decisions. Beyond his immense business success, his quiet generosity and kindness, both globally and in our Memphis community, truly set him apart.”

Should You Buy FedEx Corporation (FDX) for its Dividend?

A driver unloading packages from a van for a time-critical delivery.

FedEx Corporation (NYSE:FDX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held FedEx Corporation (NYSE:FDX) at the end of the first quarter, which was 66 in the previous quarter. While we acknowledge the risk and potential of FedEx Corporation (NYSE:FDX) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FedEx Corporation (NYSE:FDX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered FedEx Corporation (NYSE:FDX) and shared the list of best logistics stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.