If I remember correctly in about 1990 FDX changed their business model. In the 1980's they were primarily a business shipper. Anyone remember their original 1980's motto: "when it absolutely positively has to be there overnight?" They built their network as an overnight business shipper in the 80's. Every delivery went by air; there was no ground transportation by truck in the beginning. UPS, on the other hand, was still a multi-day ground transporter without an overnight air option. The two companies serviced two separate niches.

The rise of the fax machine by 1990 probably was a greater threat to FedEx's business model, than anything else they have faced. People could just fax for pennies, instead of overnighting for ten dollars or more.

In the 1990's FedEx and UPS encroached upon each other's niches. FedEx offered 'At home' parcel delivery and ground service, while UPS offered overnight delivery. The difficulty for FedEx was that they marketed themselves very successfully in the 1980's as a super-premium business shipper. In the 1990's and today they had to undo that marketing and re-market themselves as an all around shipper for home and business.

The internet sales phenomena did not really take hold until the late 1990's; a good 5 years or more after the stock started to angle upward. There is no doubt that internet sales has been a great boon to the company, but it does not explain everything about the uptick in price.

In summary, FedEx is a very different company than it was in the 1980s. The business model was different, so it might actually be more proper to not look at those early years when trying to judge the long-term value of the present company.