The value of GM stock decreased during the July 29th, 2019 – August 2nd, 2019 timeframe. Shares closed the week at $39.78 per share, which represents a decrease of $0.99 per share, or more than 2 percent, compared to last week’s closing value of $40.77
Movements in GM stock value for the week were as follows:
- Monday, July 29th: GMÂ stock opened the day (and the week) at $40.71 and closed at $40.68
- Tuesday, July 30th: opened at $40.26 and closed at $40.43
- Wednesday, July 31st: opened at $40.60 and closed at $40.34
- Thursday, July 1st:Â GM stock opened at $41.26 and closed at $40.15
- Friday, July 2nd: General Motors stock opened at $39.91 and fell to $39.78 at market close
This decrease serves a blow to the upward momentum experienced earlier this week, on the heels of healthy second quarter 2019 earnings announced on Thursday, August 1st. The stock gained 3 percent to nearly $42 per share in morning trading following the news, but then slipped during the second half of Thursday and into Friday on news of increased tensions in the ongoing trade war between the United States and China.
Before the decline, share values saw two consecutive weeks of growth. Prior to that, GM stock experienced four consecutive weeks of growth, which was preceded by four consecutive weeks of declines. Shares saw a weekly low of $39.24 (on Monday) and a weekly high of $41.00 per share (on Friday). Even so, the value was above the $40 per share mark – which marks the sixth time GM share values have reached this value so far in 2019. By comparison, shares of GM’s cross-town rival, the Ford Motor Company, fell 6 percent this week.
| Date | Open | Close | High | Low |
|---|---|---|---|---|
| 2019/8/2 | 39.91 | 39.78 | 49.23 | 39.585 |
| 2019/8/1 | 41.26 | 40.15 | 41.93 | 39.67 |
| 2019/7/31 | 40.6 | 40.34 | 40.72 | 40.11 |
| 2019/7/30 | 40.26 | 40.43 | 40.56 | 39.92 |
| 2019/7/29 | 40.71 | 40.68 | 40.8766 | 40.56 |
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 boost earnings from the brand
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. Luckily, however, the circumstance appears to be changing.
GM Cruise AV prototype testing in October 2018
We remain interested in seeing how GM stock performs during the second half 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, 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.”
2020 Chevrolet C8 Corvette Stingray Coupe with the Z51 Performance Package
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 very healthy profit margins.
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Comment
Overall, US Markets had one of their worst weeks for losses. S&P dropped 3.1%; DJI:2.6% and Nasdaq: 3.9%. So the drop in GM stock is not unexpected in this environment.