General Motors Company (NYSE:GM) Bounces After the Brexit Drop
tags: GM
As British people are now waking up and realizing that they may or may have not made the wrong decision by voting to leave the European Union, the markets are calming down. According to various analysts, the automobile sector will be among the most heavily impacted industries, so it’s no wonder that General Motors Company (NYSE:GM) along with the rest of the car manufacturers experienced a significant drop at the end of last week and the beginning of this one.
On Friday, GM wiped out nearly 5% of its value in a matter of a single session and on Monday, after another 3% drop it came to a close of $27.51 per share. As we’ve established already, investors are now sobering up and yesterday’s session was a bit more positive. Sure, GM‘s bounce wasn’t huge, but after six and a half hours of trading, the stock reached a close of $27.74 per share (about 0.8% in the green). But what does the future hold?
Well, if you ignore Brexit’s impact on the recent performance, you’ll see that overall, 2016 hasn’t been a brilliant year for GM‘s stock. There have been both ups and downs, but GM is still a long way away from reaching the highs of over $36 recorded back in December.
Reports say that the automotive industry as a whole is slowing down and it’s not surprising that GM is also feeling the pressure. At the beginning of June, the company said that the number of cars sold to retailers in May is significantly lower than what was recorded during the same month of last year. If the slow down continues, the stock might have some more problems in the future.
There is something to get investors excited, though. Articles appeared on various websites that startup car hailing service Lyft is looking for a buyer. Because Lyft and General Motors have had business relations in the past (GM recently poured $500 million into the young Uber competitor), many people reckon that GM will soon have Lyft under its wing.
But is this really going to happen? And if it is, will it keep investors happy for long? This is all for time to tell.
