General Electric’s stock rally following appointment of a new CEO snapped last week, with its shares touching a new low on Friday.
In recent times, the company has been mired in deep-seated troubles including a cratering insurance business and challenges in its power-equipment segment. But earlier this month GE stocks started going up, probably on hopes that appointment of Larry Culp as CEO would fix the firm’s problems.
However, over the past week, investors seem to have taken a step back on their enthusiasm. Perhaps they are awaiting a more definitive statement from Culp about his strategies/plans to boost the firm’s fundamentals. On Friday, GE stock price dropped more than -4% to $11.3 – its lowest since September 28 which was the last trading day before Culp was named CEO.
The stock’s decline over the whole of last week was around -10%. Although there was a broader market pullback last week, the rate (-4%) was only half that of GE’s plunge.