The stock market is a tricky thing to navigate, and since General Motors’ IPO in 2010, investors haven’t gotten the greatest return on their investment.
CNBC looked at the performance of GM stock in the past nine years, and if an investor put $1,000 into the U.S. automaker, they’d have $1,800 today. While that’s a healthy 80 percent gain, consider the fact the S&P 500 is up well over 100 percent over the same time period. That makes GM stock an under-performing investment.
GM shares have hovered in the $30 range since the IPO launched at $33 per share in 2010. At the time of this writing, one share sits at $36.90. The automaker has seen small upticks where it traded at over $40 per share, only to come crashing down with tariff announcements and headwind announcements. Even some of CEO Mary Barra’s biggest announcements, such as the sale of Opel, plant closures, and other big changes have only pushed the stock price up momentarily at best.
Compared to Wall Street technology company darling, GM has had a tough go.
Yet, Barra continues to try and paint the automaker as an emerging tech company with the coming of self-driving cars. GM stock could be a winning investment should the automaker come out ahead in the sector in what often appears as a race toward the bottom. Of course, it has major rivals to contend with, notably, Google’s Waymo division. Compared to other automakers, however, GM is far ahead of rivals in self-driving car technology.
We should see more stock movement this year as GM promises to launch a self-driving ride-sharing service via its Cruise Automation subsidiary. Eventually, GM could spin-off Cruise and launch its own IPO, but for now, the subsidiary continues to rack up major private investment, including sizeable funding from Honda.