GE Split Ahead Of 2030

Mike Leslie
April 07, 2024

GE no longer exists; it is now split into three separate public companies: GE Aerospace (NYSE: GE), GE Vernova (NYSE: GEV), and GE Healthcare (NASDAQ: GEHC).

Inputs that matter: Shareholders of GE common stock received 1 GEV share for every 4 GE shares.

  • In its second day of trading, GE Aerospace jumped 6.7%, the biggest gain in the S&P 500.
  • GE Vernova, the power business, fell 1.9%.
  • Three years ago, GE had to undergo a 1-for-8 reverse split.

The opportunity: Axios declares, "The energy sector's transition away from fossil fuels is one of the global economy's mega-trends."

  • "While oil and gas won't be supplanted anytime soon, GE Vernova's debut is critical for alternative and renewable energy."
  • "It estimated GEV to be worth around $35 billion (but far less than GE Aerospace's estimated $140 billion valuation)."

Zoom in: GE has sold and divested several of its former subsidiaries since the 2008 financial crisis hammered its finances.

  • Twenty years ago, GE was the most valuable company in the world.

Between the lines: CEO Larry Culp stated, "Over the last several years, GE has taken steps to significantly strengthen the business, including more than $100 billion in debt reduction since 2018."

  • GE Aerospace (GE) makes 70% of its revenue from skilled services.

Follow the money: GE was bailed out by the U.S. government following the 2008 financial crisis.

  • The company notably underperformed the market from 2011 to 2021.

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Read More

  1. https://www.axios.com/2024/04/03/ge-split-jack-welch
  2. https://www.newser.com/story/348598/ge-aerospace-jumps-67-after-company-split.html
  3. https://247wallst.com/investing/2024/04/04/what-you-need-to-know-about-general-electrics-stock-split/
  4. https://www.axios.com/2024/04/02/general-electric-vernova-gev-stock
  5. https://www.investopedia.com/ge-completes-its-split-into-3-public-companies-as-ge-vernova-makes-its-trading-debut-8623533
  6. https://investorplace.com/2024/04/ge-stock-alert-what-to-know-about-the-ge-stock-split-new-ge-aerospace-company/