General Electric Company (NYSE: GE) shares – an American multinational conglomerate founded in 1892 that operates in healthcare, aviation, power, renewable energy, digital industry, additive manufacturing, and venture capital and finance – plunged on Wednesday after the company reported its plan to spin off its health unit. As of 12:30 PM ET, General Electric shares dropped by 19.66%.
General Electronics was one of 12 companies originally listed in the former Dow Jones Industrial Average and remained part of the index (although not consistently) for 122 years. GE shares are still up 751.18% overall despite its 31.05% drop.
The company announced that its health unit would be spun off to GE HealthCare as it deals with losses and concerns in its power division. The company has struggled with its onshore wind turbine business as cost inflation, and supply-chain problems make things harder.
The company is set to combine its GE energy business with GE Vernova, its new business, in early 2024. This comb nation will be a mixture of gas and wind turbines.
See the $GE chart performance here.
General Electronics shares dropped as the company split off its healthcare unit. The investors' reaction happened as there are a lot of unknown factors regarding how the GE stock would perform without its healthcare unit.
Since investors can’t know for sure how the company will perform as its healthcare unit is split off, it is more important to focus on General Electronics' business.
See full $GE flow at: https://unusualwhales.com/stock/GE/flow-overview
Subscribe to our newsletter for the latest financial insights and news.
+