Molly Ayala
General Electric (GE) is one of the oldest and most respected companies in the United States, founded in the late 1800s by Thomas Edison. Despite its pedigree and successes, GE stock has been a poor performer in recent years, with a high level of debt and exposure to hard-hit industries during the COVID-19 pandemic. The company's share prices have also been impacted by scandals and C-suite executive departures, as well as a downgrade by Fitch from BBB+ to BBB in mid-2021. However, there are some positive signs for GE, including strong financial performance and increased operating profit in 2024, as well as expected growth in market capitalization and investor confidence in 2025.
| Characteristics | Values |
|---|---|
| High level of debt | $200 million SEC fine |
| Share prices haven't recovered from C-suite scandals | |
| Downgraded by Fitch from BBB+ to BBB | |
| GE's former CEO Jeff Immelt stepped down in 2017 | |
| GE's stock fell 45% in 2017 | |
| GE cut its quarterly dividend from 24 cents to 12 cents per share in 2017 | |
| GE's lowest stock price | $3.77 |
| GE's highest stock price | $360.3 |
| GE's current stock price | $271.88 |
| GE's stock price in 2029 | $253.89–$420.30 |
| GE's average stock price in 2035 | $578.86 |
| GE's stock price in 2040 | $736.30 |
| GE's stock price in 2050 | $971.82 |
| GE's stock price in July 2025 | $270.31 |
| GE's stock price in October 2024 | $178.29 |
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What You'll Learn
GE's share price hasn't recovered from C-suite scandals
General Electric (GE) has a long history, evolving from one of the first electric companies under Thomas Edison in the late 19th century into a multinational conglomerate by the 21st century. However, GE's share price has experienced a significant decline, and the company has faced various challenges in recent years. One of the key factors contributing to the drop in share price has been the C-suite scandals that rocked the company in the late 2010s.
In 2019, Bernie Madoff whistleblower Harry Markopolos made shocking allegations of fraud and manipulation in GE's Boston C-suite. Markopolos, a forensic accountant, had previously exposed Bernie Madoff's $64 billion Ponzi scheme. These accusations against GE battered the company's shares and created a media frenzy. The scandal added to the company's existing struggles and negatively impacted its public image and investor confidence.
The effects of the scandal were compounded by other factors, including the COVID-19 pandemic, which hit GE across all its market segments. In particular, GE Aviation, the company's largest business segment, was severely impacted by the halt in tourism and aviation industry shutdowns. The pandemic exacerbated the challenges already faced by GE, causing a freefall in its share price.
Additionally, GE has been struggling with high levels of debt. The company has been working to pay off its debt by dismantling its once-dominant empire and selling off business units and laying off thousands of employees. These actions have likely prolonged the negative impact of the C-suite scandals on the company's share price.
Despite some positive signs, such as GE's solid revenue growth in 2022 and its plans to invest in its US manufacturing facilities, the company has not yet fully recovered from the C-suite scandals. The share price remains volatile, and GE continues to face challenges in rebuilding investor trust and confidence. As of July 2025, GE's stock price was $270.31, showing steady demand and upward momentum, but it has not returned to its peak levels.
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The company's high debt levels
General Electric's (GE) high debt levels have been a significant concern for investors and have likely contributed to the stock's underperformance in recent years.
In 2017, GE's former CEO, Jeff Immelt, stepped down, and the company's share price entered a downward spiral. Under Immelt's leadership, GE had accumulated substantial debt, and the subsequent years saw the company focusing on reducing this debt burden. The company's once-dominant empire was slowly dismantled as it sold off unwanted stakes and subsidiaries to pay off debts and fines, including a $200 million SEC fine related to a lack of transparency about failures in its power and insurance businesses.
GE's high debt levels have also been exacerbated by its exposure to hard-hit industries during the COVID-19 pandemic, such as aviation, healthcare, and oil. The pandemic negatively impacted GE's operations across all market segments, and the company's already-struggling power business faced further challenges, with sales dropping each quarter.
While GE has taken aggressive measures to reduce its debt, the share prices have yet to fully recover from the impact of the company's high debt levels and the associated scandals. As a result, investors remain cautious about the stock, despite its potential for rehabilitation and emergence as a significant player in the 2020s.
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Poor performance in 2020 across aviation, healthcare, oil, and other industries
General Electric (GE) has a long history dating back to the late 19th century when it emerged from Thomas Edison's Edison General Electric Company. Over the years, GE became a household name and a multinational conglomerate with multiple divisions, including aerospace, transportation, energy, healthcare, and lighting, among others. However, in recent years, GE has faced challenges and its stock price has declined.
One of the key reasons for GE's stock price decline is its poor performance in 2020 across several industries, including aviation, healthcare, and oil. The COVID-19 pandemic significantly impacted GE's revenue, particularly due to restrictions on air travel. This led to a substantial drop in income from its aviation business, which has traditionally been a significant contributor to the company's overall profits.
In the healthcare sector, GE faced challenges due to the pandemic and its ongoing litigation issues. The company was accused of misleading investors by not disclosing that its reported increases in cash collections were coming at the expense of future cash flows. As a result, GE paid a $200 million fine to the SEC in 2020 and continues to face lawsuits alleging violations of securities laws. The pandemic also forced GE to freeze pensions for about 20,000 U.S. employees and cut additional jobs to stay afloat.
The oil industry also witnessed a downturn in 2020, affecting GE's performance in this sector. GE's oil field services subsidiary, Baker Hughes, likely faced challenges due to the volatile oil prices and reduced demand during the pandemic. This could have further contributed to GE's overall poor performance and stock price decline.
It is important to note that GE's struggles are not solely due to its performance in 2020. The company has been facing issues for several years, including a decline in profitability, accounting tricks, and a failed broad restructuring in 2017 that led to thousands of job cuts. However, the events of 2020 exacerbated these existing problems and accelerated the decline in GE's stock price.
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$26.99 $28.99
GE's stock is volatile
In 2024, GE completed its split into three independent companies, each focusing on aviation, healthcare, and energy. The company posted strong financial performance that year, with a substantial increase in operating profit and free cash flow. Forecasts for 2025 suggest that GE will continue to expand its market capitalization and strengthen its position in the aerospace sector. As of July 2025, GE's stock price was $271.88, and it is expected to soar.
Analysts predict that GE shares will showcase a steady upward trajectory in the long term, with the average price expected to trade near $578.86 in 2035, climbing to $736.30 in 2040, and reaching $971.82 in 2050. In the short term, WalletInvestor expects the share price to continue growing gradually, with minimal fluctuations and minor corrections.
GE's stock volatility is also reflected in its performance over the last year, with 10 moves greater than 5%. For example, in October 2024, the stock gained 8.4% after the company reported a 'beat and raise' quarter, with double-digit growth in its aerospace business. However, in October 2025, the stock fell 8.4% after the company reported third-quarter earnings that missed some underlying segments.
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GE's former size worked against it
General Electric (GE) is one of the oldest and most respected companies in the US, founded in the late 19th century by Thomas Edison. Over the years, it grew into a multinational conglomerate, buying up companies like RCA and, with it, the NBC television network. However, GE's former size, which was once a strength, eventually worked against it.
GE's stock price peaked in 2000, and the company has not been able to match that level since. In the years that followed, GE faced several challenges, including high levels of debt and scandals involving its leadership. The COVID-19 pandemic also hit GE particularly hard, as it has exposure to industries such as aviation, healthcare, and oil, which were significantly impacted by the crisis.
In 2017, GE's stock fell 45% after the company announced it would cut 12,000 jobs. The following year, in 2018, GE ended its more-than-100-year run as a component of the Dow Jones Industrial Average, a reflection of its diminished status.
To address its financial challenges, GE underwent a significant restructuring, slashing dividends and laying off thousands of employees. In 2024, the company split into three independent companies, each focusing on a particular industry: aerospace, energy, and healthcare. This move was intended to improve efficiency and financial performance, and there are already signs of a turnaround, with GE posting strong financial results in 2024, including increased operating profits and free cash flow.
Despite these positive signs, GE's former size and subsequent decline have made it a less attractive investment option for some. The company's stock remains volatile, and while it has shown steady growth and new potential highs, it has not yet returned to its 2000 peak. However, analysts predict a steady upward trajectory in the long term, with GE shares expected to reach an average price of $578.86 in 2035, climbing to $736.30 in 2040, and $971.82 in 2050.
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Frequently asked questions
GE stock is cheap due to a high level of debt and fallout from scandals in the late 2010s. The company's share prices have yet to recover, and it has been a poor performer even before the 2020 stock market crash. GE's diverse portfolio of innovative products in aviation, healthcare, oil, venture capital, and other industries have been hit hard by the pandemic.
As of 31 July 2025, GE stock is trading at $271.88, with forecasts suggesting it will continue to expand its market capitalization and strengthen its position in the aerospace sector. The stock is expected to soar, with a positive outlook and high investor interest predicted.
Analysts predict that GE shares will showcase a steady upward trajectory in the long term, with the average GE price expected to trade near $578.86 in 2035, climbing to $736.30 in 2040, and reaching $971.82 in 2050.
