The value of GM stock surpassed the $40 per share mark in intra-day trading on Tuesday, July 23rd, 2019 and remained above the $40 mark at Wednesday, July 24th. The circumstance marks the sixth time that the value of General Motors shares has surpassed the $40 per share mark in 2019, with the first instance taking place on February 6th.
We believe the uptick in GM stock value could be in response to any one of the following factors:
- Strong projections for Q2 2019 earnings, which GM will announce on August 1st
- The unveiling of the 2020 Chevrolet Corvette C8
- The launch of the Cadillac XT6 in both the U.S. and China, which is expected to deliver high margins at relatively decent volumes
- Macroeconomic factors that show favorable economic circumstances in vital markets GM, such as the U.S. and China
Interestingly, GM’s announcement that it will delay the launch of its Cruise robo-taxi service did not have a downward impact on the entity’s stock value.
After the first two peaks in the first quarter, GM shares took a bit of a dip, dropping as low as $36.26 a share on March 25th. Shares then wavered throughout the first half of the second quarter, and have been on a steady rise since the start of June. The value currently sat at $40.89 at market close on Wednesday, July 24th. In other words, it’s possible that the value of GM shares may surpass the $41.00 mark by the time the market closes on Friday afternoon.
By comparison, the value of Ford shares has been stable throughout the second quarter at $10.33 per share value, which is close to its highest value so far this year. In addition, Fiat Chrysler Automobiles shares peaked at $17.35 per share on February 6th, but have since dropped to as low as $12.62 on May 31st, and are currently at $14.12 per share, seeing an overall decline thus far in the second quarter.
If this positive upward trend continues through the end of the business week, then it would become the second consecutive week during which GM stock saw an increase in value. The longest streak so far this year was a seven-week-long rally, which started following a GM investors conference prior to the 2019 North American International Auto Show in Detroit. During the conference, the Detroit-based automaker presented its strategy for new models intended for developing markets, as well as several future Cadillac vehicles that will be significant contributors to the company’s bottom line.