The value of GM stock decreased during the August 12th, 2019 – August 16th, 2019 timeframe. Shares closed the week at $37.00 per share, which represents a decrease of $2.61 per share, or nearly 7 percent, compared to last week’s closing value of $39.61.
Movements in GM stock value for the week were as follows:
- Monday, August 12th: GM stock opened the day (and the week) at $39.23 and closed at $38.86
- Tuesday, August 13th: opened at $38.83 and closed at $37.19
- Wednesday, August 14th: opened at $38.25 and closed at $37.19
- Thursday, August 15th: GM stock opened at $37.17 and closed at $36.47
- Friday, August 16th: General Motors stock opened at $36.57 and climbed to $37.00 at market close
This decrease marks the third consecutive week of decline for GM stock, and follows a jump in value following GM’s Q2 2019 earnings, wherein the automaker outperformed estimates. The decrease this week is believed to be related to warning signs of an economic slowdown as signaled by economic indicators and analysts.
By comparison, shares of GM’s cross-town rival, the Ford Motor Company, fell 6 percent this week.
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.
Despite these actions, the value of GM stock has traditionally struggled to surpass the $40 mark, spending most of its time stuck in the $33-$38 per share range. The is problematic, since the value of the “new GM’s” Initial Public Offering, or IPO, was $33 per share in November 2010, frustrating many investors. The circumstance was changing until economic warning bells began to ring this week.
We remain interested in seeing how GM stock performs during the final two quarters of 2019, especially as the Detroit-based automaker launches its GEM-based vehicles for developing markets, completes the roll-out of its full-size pickup trucks, and begins to launch its all-new full-size SUVs and various new Cadillac models. All of these products 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, but has announced that it will push back that timeline. GM sees the robo-taxi service as a “trillion-dollar opportunity.”
In July 2019, GM unveiled the new Corvette, which is switching to a mid-engine layout for the first time in its history. The mid-engine Corvette, also known as Corvette C8 or the 2020 Corvette, will launch around December 2019. The vehicle, which is close to being sold out for its first year of production, is also expected to contribute to GM’s bottom line, since the Corvette carries healthy profit margins.