The value of GM stock decreased during the May 6th, 2019 – May 10th, 2019 timeframe. Shares closed the week at $37.89 per share, which represents a decrease of $0.91 per share, or just over 2 percent, compared to last week’s closing value of $38.80.
Movements in GM stock value for the week were as follows:
- Monday, May 6th: GM stock opened the day (and the week) at $38.80 and closed at $38.09
- Tuesday, May 7th: GM stock opened at $38.09 and closed at $38.53
- Wednesday, May 8th: opened at $38.53 and closed at $38.21
- Thursday, May 9th: GM stock opened at $38.21 and closed at $37.58
- Friday, May 10th: General Motors stock opened at $37.54 and rose to $37.89 at market close
The decline in value experienced this week marks the third weekly drop for GM stock after four consecutive weeks of gains. Shares saw a weekly low of $37.04 (on Friday) and a weekly high of $38.53 per share (on Tuesday). 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. By comparison, shares of GM’s cross-town rival, the Ford Motor Company, fell by $0.20 per share.
We posit that the decline in GM stock value this week was the result of the ongoing trade war between the United States and China, which sent ripples through the stock market. The Dow Jones Industrial Average, for instance, saw a drop of 1.5 percent during the week.
| Date | Open | Close | High | Low |
|---|---|---|---|---|
| 2019/5/10 | 37.54 | 37.89 | 37.975 | 37.04 |
| 2019/5/9 | 38.21 | 37.58 | 37.67 | 37.22 |
| 2019/5/8 | 38.53 | 38.21 | 38.775 | 38.14 |
| 2019/5/7 | 38.09 | 38.53 | 38.89 | 38.274 |
| 2019/5/6 | 38.8 | 38.09 | 38.17 | 37.25 |
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, while the value of the “new GM’s” IPO was $33 per share in November 2010. The circumstance has had many investors frustrated. However, the current value of $37.89 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 is planning to roll out an autonomous ride sharing service from its Cruise division by the end of 2019. GM sees it as a “trillion dollar opportunity”, with Cruise AV division on track to launch the service in limited markets by the end of this year.
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Comments
This is the end of ‘replacing cheap sensor that won’t work below freezing’ season at GM and the beginning of ‘replacing the cheap air conditioning system’ season. Paying out the nose repair for crappy transmission repair is year round.
Wonder why they couldn’t run a profit in Europe?
I wonder how much money FCA loses every winter when half of the Ram 1500’s with air ride freeze up and start blowing fuses. The dealer lot sure looked like it was packed with Ram 1500’s with the rear end jacked up and the front suspension stuck riding on the bump stops. Every one of them waiting for a total replacement of the Chinese sourced air ride components. When will manufacturers learn that air ride systems in passenger cars is a terrible idea. It was bad back when Lincolns used such a system and it’s still bad today.
Maybe they should make the pre-BK moves they did 10 years ago when stock prices were .99 cents…
the market as a whole went down about 2%.
maybe you should also mention how lyft sort of got a major kick to the nuts this week since gm owns a piece of them. their ipo price was 72 and now they are 51.
and uber fell about 8% from their ipo price on friday. seems like the shine is wearing off for these money losing disruptors.