Don't take it personally, GE... The "equity analyst" job description involves being judgy. Really judgy. About stocks. And JPMorgan's analyst for General Electric announced he thinks the stock's not worth as much as everybody else thinks. It's just his opinion, but investors listen, so GE shares fell 5%.
GE's come a long way... Just not long enough, according to Stephen Tusa:
- The Golden Era (1892-2016): GE became the American corporate conglomerate legend, making machines that moved people, mountains, and power.
- The Reckoning (2016-2017): Tusa was first to call out GE for its profitability problems in a 235-page memo in May 2016. Here's his follow-up a year later (a quick 133-page read). Shares are down 68% since 2016.
- The Cleanup (2018-today): Fixing GE is a work in progress, but shares have risen 50% on that progress so far.
A 127-year-old is really, really slow to change... GE's been impressively honest with itself about its problems. It's on its 3rd CEO in two years, written down the value of a bunch of its poorer divisions, and chosen just three it'll focus on going forward (aviation, power, and renewable energy). Tusa sees a lot more work to do.
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