GE is worth less than $100 billion for the first time since the Great Recession
GE’s value falls below $100 billion for the first time since the Great Recession
General Electric (GE) has long been regarded as one of the pillars of the American economy. The conglomerate, which was founded in 1892 by Thomas Edison, has had its hand in everything from lightbulbs to jet engines to healthcare technology. However, in recent years, GE has fallen on hard times, and its market value has plummeted.
For the first time since the Great Recession in 2009, GE is now worth less than $100 billion. This is a significant milestone for the company, which was once worth over $300 billion at its peak. The decline in GE’s market value can be attributed to a number of factors, including a series of ill-timed acquisitions and a mounting pile of debt.
One of the major challenges facing GE is its struggling power division. The company has been hit hard by the shift away from fossil fuels towards renewable energy sources. GE’s power unit, which manufactures gas turbines and other energy equipment, has seen a significant decrease in demand, leading to a decline in profits.
In addition to its troubles in the power sector, GE has also faced scrutiny over its accounting practices. In 2017, the company announced that it would restate its earnings for the previous two years due to accounting errors. This revelation shook investor confidence in GE and contributed to the decline in its market value.
To turn things around, GE has embarked on a series of cost-cutting measures and divestitures. The company has sold off several of its non-core businesses, including its transportation and healthcare units. GE has also announced plans to reduce its debt and pension obligations in an effort to improve its financial health.
Despite these efforts, GE still faces an uphill battle. The company’s stock price has continued to decline, and its market value remains below $100 billion. GE’s new CEO, Larry Culp, has acknowledged the challenges facing the company and has vowed to take decisive action to restore shareholder value.
In conclusion, GE’s decline in market value to below $100 billion is a sobering reminder of the challenges facing one of America’s most iconic companies. It remains to be seen whether GE can successfully navigate these challenges and regain the trust of investors. Only time will tell if GE can once again reclaim its status as a powerhouse in the American economy.
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