The value of GM stock decreased during the April 29th, 2019 – May 3rd, 2019 timeframe. Shares closed the week at $38.80 per share, which represents a decrease of $0.88 per share, or just over 2 percent, compared to last week’s closing value of $39.68.
Movements in GM stock value for the week were as follows:
- Monday, April 29th:Â GMÂ stock opened the day (and the week) at $39.75 and closed at $40.01
- Tuesday, April 30th: GM stock opened at $38.92 and closed at $38.95
- GM reported its Q1 2019 earnings in the morning
- Wednesday, May 1st: opened at $38.95 and closed at $38.75
- Thursday, May 2nd: GM stock opened at $38.75 and closed at $38.25
- Friday, May 3rd: General Motors stock opened at $38.48 and rose to $38.80 at market close
The decline in value experienced this week marks the second weekly drop for GM stock after four consecutive weeks of gains. Shares saw a weekly low of $38.17 (on Friday) and a weekly high of $40.28 per share (on Monday). As such, the value has again fallen below the $40 per share mark – which the stock has briefly surpassed five times so far this year (including this week’s occurrence). By comparison, shares of GM’s cross-town rival, the Ford Motor Company, remained steady at $10.41 per share during the week.
| Date | Open | Close | High | Low |
|---|---|---|---|---|
| 2019/5/3 | 38.48 | 38.8 | 38.9 | 38.17 |
| 2019/5/2 | 38.75 | 38.25 | 38.84 | 38.2 |
| 2019/5/1 | 38.95 | 38.75 | 39.2 | 38.655 |
| 2019/4/30 | 38.92 | 38.95 | 39.47 | 38.56 |
| 2019/4/29 | 39.75 | 40.01 | 40.275 | 39.69 |
Over the last few years, GM has taken many steps to increase the value of its stock, including exiting markets where it can’t find ways to turn a profit (such as Europe, South Africa and India), closing plants in various parts of the world, divesting loss-making divisions (such as Opel-Vauxhall), making adjustments to its business model in order to prioritize profitability over chasing market share goals, focusing on its Cadillac luxury brand to increase its share of high-profit automobiles, investing heavily into new-age mobility ventures such as electric vehicles and autonomous driving tech, while discontinuing some sedans (Cruze, Impala, LaCrosse, XTS) to focus on more profitable crossovers, SUVs, and pickup trucks.
The 2020 Cadillac XT6 is one of the all-new models meant to reinvigorate the Cadillac brand as part of GM’s strategy to increase the brand’s return
Despite these notable actions, the value of GM stock has struggled to surpass the $40 mark, spending most of its time in the $33-$38 per share range. To note, the IPO value of the “new GM” was $33 per share in November 2010. The circumstance has had many investors frustrated. However, the current value of $38.80 represents an improvement in the value of GM shares. In fact, GM stock has gained about 18 percent since opening the year at $33.64 per share on January 2nd, 2019, thereby outperforming the Dow Jones Industrial Average.
GM Cruise AV prototype – October 2018
It will be interesting to see how GM stock performs during the rest of the year, especially as the Detroit-based automaker launches its GEM-based vehicles for developing markets, completes the roll-out of its full-size pickup trucks, begins to launch its all-new full-size SUVs and various new Cadillac models – all products that are expected to contribute significantly to its bottom line. In addition, the automaker was planning to roll out an autonomous ride sharing service from its Cruise division by the end of 2019. GM sees as a “trillion dollar opportunity”, and its Cruise AV division is on track to launch the service in limited markets by the end of this year.
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Comments
Cruise AV division is on track to launch the service in limited markets by the end of this year.
Did GM actually say that or is that your view?
What I’ve read Cruise say is “Launch the brand to everyone in San Francisco in the fall of 2019” and “Launch our self driving ride hailing service in calendar year 20”.
Although launching this service will result in significant capex and opex in the short-term, it will add significant value to GM if they can do it. The market doesn’t believe it will and GM hasn’t been very forthcoming will specifics recently.
musk just said autopilot is “fail safe” with the latest upgrades.
within two years, he said there will be a million autonomous taxis generating up to $30K per year. so that comes out to $30BN dollars of revenue per year. and since EVs are supposed to be more or less maintenance free, just about all of that will fall to the bottom line.
according to musk, all that makes tesla a $500BN dollar company or 10X what it is currently worth.
so if Cruise is a success, is that the kind of stock movement we should expect from GM? or is musk just pitching a different con to buy more time?
I don’t trust anything Barra says and have no confidence in what she does. Cruise will be nothing more than a money drain on GM. Hopefully it will fail and GM can go back to building good vehicles for the rest of us.
Musk is being Musk. None of the studies ranking autonomous vehicle programs have Tesla in the top 10, with Waymo and Cruise consistently at the top, with a big gap to the rest.
I would expect Cruise to lease most of its cars through GM Finance. Costs would include finance, depreciation, self insurance, cleaning, electricity, tyre replacement etc. Then there’s the cost of running the service and IT systems. Then you have Head Office costs and reseafch and development. Cruise is forecast to spend $1bn this year. So I would guess a margin of 30-40% in time. It will initially lose money. Uber’s margin is about -30%.
But when its all go GM is well placed to roll this out in key cities in the US and Canada, as it has a production line to produce the car together with current representation across the country. Look how quickly they have expanded Maven. Its even in Australia now.
GM believes it is a $1tn market when the price is lowered. GM may take 20% share, at 30% margin gives $60bn, less tax leaves a $48bn profit. It would be a high returning business with strong cashflow, so could trade at 15-20 x earnings. So in 10-20 years could be a trillion $ business. But thats just one scenario based on wild assumptions. We do know the Softbank and Honda investments value Cruise now at abiut $15bn.
stock down sales down no sedans all people don’t want suv,s or electric or self driving cars . Good job Mary and your cronies it will get worst