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

NYSE:GE falls by 1.72% on Thursday despite news of Iraq agreement.
General Electric’s aviation department gets a boost with NASA jet engine production.

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.

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