General Motors’ initial public offering opened share prices at $33 a piece, and since then, the automaker’s stock has stayed relatively stable. But, recent actions have pushed share prices upward. It appears GM is finally making friends on Wall Street.
Automotive News reported on Sunday that the automaker’s actions have finally begun to unlock value in its stock. CEO Mary Barra has long declared the automaker’s stock is undervalued. Despite record profits and years of high sales, nothing moved the needle for GM.
Now, it’s the technology investments that have traders excited about GM stock. GM shares jumped 13 percent following SoftBank’s $2.25 billion investment into General Motors’ Cruise Automation subsidiary. The increase was the automaker’s largest jump since its IPO in 2010. GM stock is also up nearly 30 percent this past year to $44.45.
Numerous analysts also believe GM stock could reach even higher in the years to come. Investors are banking on GM’s self-driving car strategy and a major Cadillac turnaround to fuel revenue.