The value of GM stock increased during the November 25th, 2019 – November 29th, 2019 timeframe. Shares closed the week at $36.00 per share, which represents an increase of $0.67 per share, or nearly 2 percent, compared to last week’s closing value of $35.33.
Movements in GM stock value for the week were as follows:
- Monday, November 25th: GM stock opened the day (and the week) at $35.45 and closed at $35.81
- Tuesday, November 26th: GM stock opened at $35.70 and closed at $35.91
- Wednesday, November 27th: opened at $36.01 and closed at $36.14
- Thursday, November 28th: market closed for Thanksgiving holiday
- Friday, November 29th: General Motors stock opened at $36.05 and fell slightly to $36.00 at market close, which was at 1:00 rather than 4:00 for Black Friday
This week’s rebound in GM value is surely a breath of fresh air for onlooking investors after two consecutive weeks of decline. A recent analysis by a third party shows an increase in GM’s presence amongst hedge fund portfolios, growing from 49 to 68 in about one month. By that metric, one could deduce that seeking investors still view GM stock as having a strong potential for growth.
That said, the recent drop in value was a bit of a blow to GM stock, which seemed to be gaining momentum after a five-week streak of growth. The previous drop in value came after Tesla revealed its Cybertruck pickup truck that could theoretically threaten GM’s leading position in pickup trucks, though GM has since gone on the record to outline the obstacles that must be overcome before electric vehicles become mainstream.
Other aspects may also be influencing GM stock value, including the RICO lawsuit GM filed against FCA, claiming the automaker was “paying millions of dollars in bribes to obtain benefits, concessions, and advantages in the negotiation, implementation, and administration” of the labor agreements. Adding to the drama is the fact that UAW President Gary Jones stepped down amid the investigation. It’s unclear how either event impacted GM’s stock value.
The current ebb and flow is emblematic of GM stock value’s overall performance, as it has been in limbo throughout most of 2019. Last week’s drop in value effectively scrubs the five-percent jump in value GM stock experienced after the release of its Q3 earnings report on October 29th. GM stock saw an initial jump in value as a result of overwhelmingly positive Q2 2019 earnings, wherein the automaker outperformed expectations. Several subsequent drops in value prior to the strike are believed to have been related to warning signs of an economic slowdown, along with various escalations with trade wars in China.
By comparison, shares of GM’s cross-town rival, the Ford Motor Company, increased $0.17 per share, or 2 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) and closing various plants to focus on more profitable crossovers, SUVs and pickup trucks.
Despite these actions, the value of GM stock has struggled to surpass the $40 mark, spending most of its time stuck in the $33-$38 per share range. The chain of events is problematic given that the “new GM” had its Initial Public Offering (IPO) at $33 per share in November 2010, causing frustration upon many investors.
We remain interested in seeing how GM stock performs through the end 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 early next year. All of these products are expected to contribute significantly to GM’s 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 has delayed the launch timeline. GM sees the robo-taxi service as a significant opportunity for growth.
In July 2019, GM unveiled the new Corvette, which adopts a mid-engine layout for the first time in its history. The mid-engine Corvette, also known as Corvette C8 or the 2020 Corvette, is scheduled to launch by the end of 2019. The convertible model, announced in October 2019, will launch in 2020. The Corvette is a noteworthy contributor to GM’s financial performance, since the Corvette carries healthy profit margins.