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FedEx outlook, Amazon, Tesla's India factories: Stocks

Akiko Fujita, Josh Lipton and Luke Carberry Mogan

FedEx (FDX) shares close over 4.5% higher after reporting a first-quarter earnings beat and boosting its guidance. Amazon (AMZN), on the other hand, closes in the red amid heightened speculation on whether the Federal Trade Commission (FTC) will file an anti-trust claim against the online retailer. Tesla (TSLA) is reportedly exploring plans to build out battery storage factories in India.

Yahoo Finance Live anchors Josh Lipton and Akiko Fujita examine several trending stocks following Thursday's closing bell

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video transcript

AKIKO FUJITO: FedEx shares rising today after profit topped analyst estimates. The company boosted the low end of its earnings forecast.

Strong analyst commentary this morning helping boost the stock as well. JPMorgan Chase analyst Brian Ossenbeck said he expects FedEx to outperform the industrial sector in near term after a significant earnings beat.

And, Josh, as we were saying yesterday on the back of their results, this was a strong one with some tailwinds, you could argue, for the company given what was playing out with UPS. But certainly FedEx not-- you know, far from kind of in the clear here because--

JOSH LIPTON: No, absolutely.

AKIKO FUJITO: --those labor costs, you know, something that we'll continue to be watching.

JOSH LIPTON: Labor costs and also just the general macro, you know, this kind of weak demand that we saw. I thought some of the comments, Akiko, that we saw from execs were interesting. They felt good about how they executed, but the macro, they said, did not help. So an ongoing challenge there.

Moving on to shares of Amazon closing the day in the red. That's after three executives were added to the FTC's lawsuit against the tech giant and cloud giant. A sixth straight day of declines for Amazon matches their longest losing streak since the end of February. Stocks have been pulling back amid growing speculation that the FTC will file a major antitrust suit against Amazon.

AKIKO FUJITO: Yeah, and you know, this comes a day after we saw Amazon drop that merchant fee. Roughly 2% is what was expected to take shape coming in October. We're seeing some parts move here with Amazon as they go towards this expectation of a lawsuit. Obviously Google already in that antitrust case. But you have to wonder how much of that self-correction happens moving forward for these companies knowing that the FTC is continuing to build that case.

JOSH LIPTON: Yeah, of course we have these reports the FTC is considering filing that big antitrust lawsuit against Amazon soon. And interesting, Akiko, because when we talk on Yahoo Finance with the analysts who cover the name, yes, they say it's an overhang. But some of them have been crunching the numbers, and they think-- let's say even if the company is broken up, some of the folks we're talking to think, by their numbers, worth $148 to $193 a share. So some on the Street, yes, it's an overhang, but they're not too worried. We'll see.

AKIKO FUJITO: And with regulation, always the expectation this is going to be a long-term play, right?

JOSH LIPTON: This is years.

AKIKO FUJITO: It will play out over weeks, exactly, or years. You're right.

Let's take a look at Tesla shares today. They are moving lower on a report that the EV maker has drawn up plans to make and sell battery storage systems in India. According to Reuters, Tesla submitted a proposal to officials seeking incentives to build a factory in India. Elon Musk continues a push to enter the country.

And, Josh, I realize we've been so focused on India being sort of this next big opportunity for tech companies but also Tesla, but, you know, you could argue that India as well as many other countries have really been chasing those green dollars coming in. Tesla's kind of at the forefront of it. This announcement today, or at least this reporting coming through from Reuters, points to that opportunity these countries see.

We should point out, by the way, Elon Musk also met with Thailand's new prime minister today who's also courting Tesla to build. So we're sort of seeing this global race to try and get that money, and Tesla, being sort of the EV leader, really at the forefront of those conversations.

JOSH LIPTON: Yeah, and you're right to point out too a broader story than just Tesla. So many companies from so many industries looking to India. You think most about Apple, of course, moving manufacturing to [INAUDIBLE]-- moving there as well. Down today, by the way, Tesla. But, of course, if you're a Tesla bull, you've been riding a rocket ship this year. It's up about 110%.

AKIKO FUJITO: Yeah. 110%.

JOSH LIPTON: Not bad.

AKIKO FUJITO: Not bad.