Stephen Weiss, Founder, Short Hills Capital Partners GXO Logistics GXO-N SELL Feb 19, 2025

They're saving Nike 100 basis points on their business. A fine performer and stock with growth ahead.

FedEx still missed revenues. The best thing that happened to UPS was FedEx kicking Amazon out, because they no longer playinng against one another one in terms of pricing. GXO is completely different from FedEx. GXO is a cost-plus or take-or-pay business with inflation escalators. GXO has 6% of the 3rd-party logistics business globally and are the largest independent amid more outsourcing. GXO will be fine and will trade with market, outperforming UPS or FedEx.

It got beaten down too much. They benefit from e-commerce and the outsourcing trend. 

They enjoy locked-in contracts with inflation kickers with a blue chip clientele. The e-commerce market is only 6% outsourced, so there's huge upside.

Continues to like it, though logistics is not his favourite sector. GXO enjoys ongoing outsourcing trends (i.e. Amazon, Nike, Intel) from companies who pay for their services. He's very long GXO, but it's tenuous.

Hasn't do well recently, but they report good quarters. Their outsourcing should do well.

A valuable company but it's had a monster move lately.