BHGE - Why Shares of General Electric Plunged in August
Shares of General Electric (NYSE: GE) fell 21.1% in August, according to data from S&P Global Market Intelligence, after a prominent financial critic declared the company "a bigger fraud than Enron." That's a powerful accusation, and one that certainly got investors' attention. However, there are reasons to believe not all is as bad at GE as the critic claimed.
General Electric is far removed from its days on the list of top growth stocks, plagued in recent years by financial weakness made worse by poor acquisitions and mismanagement. CEO Larry Culp took over in October 2018 with a plan to divest underperforming assets and pay down debt, but even bulls concede his ambitious plan will take years to play out.
GE's GE9X engine. Image source: General Electric.