GE’s Awful Week Pushes This Year’s Stock Wipeout to $100 BillionBy
A week ago, General Electric Co.’s new boss lamented the company’s “completely unacceptable” performance. Shareholders must be feeling the same way.
The fifth straight share decline pulled the stock down 13 percent on the week. That was GE’s worst weekly drop since March 2009, the month when the S&P 500 Index reached its recession-era nadir.
With about $26 billion of market value wiped out over the past five days, the loss for GE shareholders this year has now reached $100 billion -- more than the current market cap of Goldman Sachs Group Inc.
GE is the worst performer by far in the Dow Jones Industrial Average this year as it grapples with weak markets in power, oil and locomotives. The issues took center stage last week as the Boston-based company slashed its cash and profit forecasts while reporting earnings that fell well short of Wall Street estimates.
John Flannery, who took over as chief executive officer in August, is weighing all options to arrest the slide, including portfolio changes. Investors are also bracing for a possible dividend cut. Any reduction to the payout would be the first since early 2009.