General Motors Shares Just Hit Another Record
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General Motors Company stock is hot: having set a new record last week, the automaker’s shares hit a new 52-week and all-time high today – increasing over 2 percent in value to $46.11 in day trading, before closing at $45.88.
The new value gives GM a market capitalization of $66.86 billion at a P/E ratio of 7.27.
By comparison, GM’s initial public offering in November 2010 hit the market at the $33 per share set price.
General Motors Stock Price – 3 months back as of October 13, 2017
A big part of Wall Street’s newly-bullish position on GM seems to be based on the realization that the automaker is very advanced in terms of the electrification and autonomy of its vehicles. By comparison, other major automakers appear to be well behind The General’s efforts in the two areas that promise to transform traditional automotive transportation.
In discussing GM’s efforts in new energy vehicles and automation, The Street’s Jim Cramer was quoted as saying on CNBC’s Mad Dash segment that “Ford really got left behind”. He also noted that it could be possible that General Motors has more of an edge on Tesla than many investors currently realize, concluding that Tesla continues to be a cult stock, rather than one based on actual financial performance.
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Barra makes money, improves share price, ups the quality of the product portfolio.
Internet commenters on GMA have nothing but vitriol for her because of the ‘her’ part. “She didn’t fix my bottom cushion leather from my 2003 GMC because she was too busy giving them euro commies Vauxhall for free, and everybody knows Vauxhall is American!” says Bob.
It’s a lovely day when a CEO makes money even for the dumb people who hate her.
Left-wing Larry Trombone spouting his socialist hate-mongering and sneaky feminism all at once. Then again, guess he has nothing to do after being humiliated in the election…
Looks like Barra working with President Trump made things BETTER for the stock, not worst. Might have to do with her finally agreeing to move production back to the U.S. (or at least not move it to Mexico as planned) after President Trump whipped her into shape about a little thing caled supporting America.
Going to be a long, lonely and agry road for you, Trombone. For the rest of us, pure smiles and joy.
2 THINGS ARE FOR CERTAIN
Nobody likes a commie that is for sure…And GM stock rise mirrors the overall stock market’s record-setting performances since President Trump was elected. Reality sometimes hurts.
Old Trombone the troll, sorry to say but you really are a left-wing nutjob. Please get some help for your anger because the world obviously isn’t going communism and the reality is President Trump already set to win re-election in 2020.
Getting rid of opel stock goes up! Maybe Holden should be next! Yea I think so
Magic acts like selling off Opel look great on paper and satisfy the Harvard Business School drone who shape public opinion.
Their job is to think short-term quarter-to-quarter without looking at the big holistic picture. This is one of the big problems plaguing American business today.
Holding Opel would have provided more scale for new technologies due to EU strict emissions standards. An EV Opel would have taken Ford and Renault share.
GM needs to be thinking ten years ahead as they have with electric and fuel cell and autonomy as opposed to pleasing The Street with illusion. Also, Opel gotten proper licensing fees for products sold as Buick and Chevrolet, the company would have been profitable. Wait and see reactions to a China only Regal or Cascada type halo.
Brian, GM will die as a US brand only firm so quit the flag waving.
You are right, elitist Harvard sucks. But wannabe know-it-all blogging types are just as bad.
Case in point, “EU strict emission standards”??? WTF are you smoking? Heard of diesel gate? Or how the EU allowed dirty diesels for decades that other countries like the U.S. banned?
Maybe they are atoning for their sins now, but it will take decades to reverse the damage the EU allowed.
Here is how the future will work.
The market treasures tech companies. While often a greater risk the odds are better for a larger return on investment.
GM and many other Ato mfg are investing into high tech and not just Electric Autoa.
The key here is not only advancements in the EV market could be realized but also gains in power systems, motors, and even AI advancements.m
Many forget GM at on3 Time was well into aerospace technologies.
GM has gotten their house in better order and continuing to trim dead wood from the portfolio. They have much improved their efficiencies and continue to work to be better. They are working to react to trends faster than they have in the past. Before they would invest into a division for decades and now they are removing the losing division and investing in much more lucrative markets.
The problem was GM could not convince market they were committed to this tech move but now they have gained their confidence.
The advantage they hold over Tesla is size and cash flow. GM can afford to invest in these advanced technologies because of the sale of CUV and Truck ICE models. These more than pay the bills they also pay dividends as investors wait. Most tech companies can’t do this even Tesla.
Also GM has a tech staff that is larger than Tesla and they are expanding it more.
Just look st the Billion dollars going into the tech center few can afford to do this.
Ford has announced Edison program but they are behind. As GM cut cost Ford was investing heavy in products. While not a bad thing it has not brought the returns either.
The Aluminum in the truck too a ton of money but the return was small. The GT was great PR but it will not make any money.
Ford started late to invest in Lincoln before it was shown it could be a profit center. But they have not shown the commitment as GM has financially into it. They continue to repeat past sins.
The Ford family under Bill Ford has struggles with his decisions and choice of leaders with short term goals. This has slowed them down and hurt stock prices.
Mary on the other hand has not only continued the house cleaning of old culture Lutz started but also has a very good financial officer helping her get the company more efficient.
The key now is to pass the tax cuts and keep the market moving as it has. They are looking for cooperate tax cuts to continue spending and investing into the companies.
As written the tax cuts will probably hurts GMs bottom line. They were able to carry over 30+ billion in losses pre bankrupcy at 35%. If the rates go to 20% thats a ton they can’t write off.
There is some loss here but also there is gain in other areas as well more money available to be invested by investors.
The overall effect is generally higher stock prices and company investment that leads to stock growth.
Also as written is not the final draft yet.
Or that President Trump being elected saw the stock market go to unprecedented record levels and still going up, which in turn pushed GM up.
Oh, and consumer confidence at record highs, manufacturing too, and so on…
After a few years of going sideways, GM seems to have attracted investor’s attention.
Their latest earnings weren’t stellar – but I’d suppose it was a combination of factors (?) – good products, selling Opel, future-forward plans that separate GM from Ford and FCA and others? The P/E’s 7, so it’s a bit of a value play in an otherwise overheated mkt?
Whatever it is, it seems to be working…
They can push their trash on the uninformed better than ever, time to repay the $11 billion they still owe the American taxpayers, who are real people, not actors.
GM DOESN’T OWE THE AMERICAN PEOPLE ONE DIME!
What part of paid in full don’t you understand?
GM was given a loan and GM paid it back!
People like you is what makes this country pathetic!
The goverment too the stock in place of the loan repayment.
Then someone during the last administration decided to sell it at a loss because the did not expect th e market to improve.
Well they were wrong.
So at this point the goverment sold the stock, GM is clear of any obligation.
So you can continue to lie but it does not change the truth.
Gov invested and sold off in the low 30s. If they still owned the shares they would have been in the positive. If you combine all the bailouts in 08-09 the goverment actually made money. Not including the fact they kept a huge amount of unemployment/tax revenue from falling off a cliff.
I didnt see the gop caring when bush bailed out the airlines.
General Motors CEO Mary Barra is making all the right moves by cutting deadwood as this is why Barra decided to sell off Vauxhall and Opel; then positioning General Motors to be less vulnerable to strikes like Unifor’s recent decision to strike at the CAMI facility didn’t hurt sales because GM had a secondary source for the Chevrolet Equinox in Mexico as Barra has trimmed the fat by making GM run more efficiently as a corporation which is reflected by how profits are higher on GM vehicles than a comparable Ford.
The Dow Jones Industrial Average Index has increased by 40% since Barra’s appointment. GM’s stock value has increased by 27% in the same period.
The numbers don’t lie.
Show another established automaker who has shown much growth lately?
GM has gain interest of the tech investors. If they can now deliver on this and show a profit they many not become an Apple but they will see much increase in their market value
Well Groupe PSA has seen its share price increased from €13.66 to €20.32, an increase of 49% in the same time as GM’s has increased by 27%. Meantime, over at FCA, their share price has also increased from $9.19 to $17.75 in the same period – an increase of over 90%.
Yet FCA is still at $17 and Ford just got to $17 after a few years at $11.
You have to use al, the figures not just cherry pick percentages.
Moving 49% means little when you start at $9.
PSA means little as they gained volume but not much else from GM. Them coming to the states and being successful is still a long shot st best.
If I’d $1,000 or €1,000 to invest, I think I’d be more interested in the percentage return than either the starting value or finishing value of the share. If I’d invested $1,000 in FCA, that initial investment would now be worth $1,931, whereas if I’d sunk my hard earned into the general it would be worth $1,270. Now to be fair, I’ve no more interest in FCA than I do in dating Hilary Clinton – which in case anyone’s wondering isn’t really a lot. But I do know where I wish I’d put my money over the last while… and it ain’t the General 🙁
With regard to PSA, I think the USA is pretty much irrelevant to their future ambitions. It may prove an interesting niche for DS, but little more than that. The bulk of PSA’s business is and well remain elsewhere in the world.
Absolutely a valid point. But that is across the board. You can’t compare blue stock, old (you know what I mean, no need to flame me) industry to recent/new industry.
The growth curve of “new” industry, particularly tech companies is always rapid; the growth curve of “mature” industries is minuscule and often flat (or declining if the core idea is substituted or becomes obsolescent, for eg. typewriters to computers).
Compare Tesla (essentially a tech company with car products, amongst others) with GM (essentially an automotive company with some new tech). The tech company has the high growth (and yes, i know it’s not profitable RIGHT now, but that’s how they go until their core product/service is established), while the mature company plods along, nothing spectacular, but stable and planted.
You left off dividends and average share reduction.
GM has been way undervalued. That’s because many analysts, investors and business media people were focused on Tesla, Google and UBER as the big winners. GM as an investment was considered a strong sell, as they would be left behind.
GM, the company and the stock, were victims of fake news, or maybe ignorant news.
Just a whole batch of totally new crossovers about to invade the core of the market. All receiving excellent reviews, on all fronts. New trucks to come out later next year.
Future technologies at GM also have a clearer path to reality toward mass market.
Too many positives today, from eight hard years+ of hard work via major new and retool investments.
Well, Just John has a point.
But for skilled market-timers (if there is such a thing), GM has pretty much matched various indecies’ upward spike from Sept-Oct.
Likewise, if you were prescient-enough to buy new GM when it opened in the 30s and dropped to 18 or so, congrats.
But given GM’s expanding market cap, sorry for repeating myself – but if you own any non-sector cap-rated index, 500 or 1000, you have GM in there. (Don’t mean Nasdaq – ).
And you’ll/we’ll have more when the indexes have their cap-weighting adjustment.
Yeah, it went sideways for a long time.
Guess it depends on your time horizon.
Stocks are just another form of gambling,
Some like in gambling in stocks you can control the risks to a certain degree.
Some stocks are like Lottery tickets and hold high risk and low odds of coming out with a return.
Now other stocks are often like Black Jack where you can control the risk and better understand the odds. Winning is not a sure thing but the risk is more reduced and better controlled.
The GM stock is a low risk and possible steady return. They have been given the opportunity to make gains by the market watchers and it is up to them to build on this.
Also if you bought in on the stock you will neither lose or gain a dime till you sell. So if anyone bought in @ $30 and gas never sold they have not lost a DIME and if anything made money on a dividend.
While the GM plan is a slower growth less risk plan it may not be as sexy as Tesla but it is appealing to investors and fund managers.
Showing increase in value along with dividends is key to growth and stabilization.
The 800 pound gorilla in the corner is the market strength. Should the goverment fumble the tax breaks it will get companies to stop investing in growth and investors to stop buying stocks. The tax cuts are money freed up for both parties and if the money is cut off the market will stagnate again.