GE Stock: General Electric Company continues its downtrend as former CEO invests in rival Bloom Energy

It has not been particularly fun for General Electric investors over the past five years as the stock price has seen a near 80% free-fall since August of 2015 when shares were trading for over $30.00. Fast forward to August of 2020 and the price closed Thursday’s trading session at a measly $6.28 – a far cry from what the once behemoth company was worth. Though GE still has a sizable market cap at just under $55 billion, it remains to be seen if the utility conglomerate can ever return to its glory days. 

GE’s recent announcement of a deal with the Government of Iraq is a positive sign for a company that has struggled with revenue streams during the novel coronavirus – although its unprofitability was a clear issue far before the worst of the pandemic. Despite the $1.2 billion contract, GE’s stock was little changed and has continued to deteriorate with a 52-week loss of 20%. Shares are trading at below its 50-day moving average of $6.68 and last saw levels above its 200-day moving average in early June. GE has been moving well below the S&P 500 as well – lagging the major index by nearly 40% over the past year. 

GE Stock Forecast

Recently, former CEO Jeff Immelt made headlines by going all-in on alternative energy firm Bloom Energy (NYSE:BE). Immelt purchased 70,000 shares totalling nearly $1 million as he called the company “the most exciting energy platform of this era.” One could perceive this as a backhanded jab at General Electric who has struggled to remain relevant in an age of alternative energy sources. One plus for GE’s recently unprofitable aviation wing is the development of a new NASA jet that is testing ultra-quiet, supersonic travel. GE’s stock may seem like a discount today, as evidenced by its presence at #2 on the Robinhood stock popularity list, but it may be a long road back to profitability for the company and its investors.