General Motors Company (GM Stock) and Ford Motor Company (F stock) are hoping their earnings results for the following week will persuade investors suspicious that their efforts over the past decade have been successful in unchaining them from the U.S. economic cycle.
Consumer demand has been hurt as a result of rising interest rates in the United States, higher oil prices, and economic slowdowns in the United States, Europe, and China. Wall Street suspects that both companies could fall short of their profit forecasts for 2022 or underperform next year because of these factors.
Analysts at Berenberg noted in a note that despite the fact that there has not been a significant decline in automobile demand so far this year, it is increasingly probable that there will be a decline in 2023.
General Motors and GM Stock Performance
General Motors ( NYSE:GM ) announces results Tuesday. After that comes Ford on Wednesday, which has previously warned investors that the company’s performance for the third quarter would fall short of their forecasts due to snarls in the supply chain and logistics. Investors on Wall Street have not waited to act on their concern that demand for automobiles is now beginning a long-delayed cyclical decline. Instead, they acted immediately.
Since Ford announced on September 19 that third-quarter profits will take a hit due to supply chain snarls and parts cost inflation, shares in significant automakers and auto dealer groups have plummeted. Additionally, used car retailer CarMax warned on September 29 of softening demand, which may have contributed to the decline.
Since the company issued its warning, shares of Ford have fallen by 19% and have lost more than half of their value since reaching a 52-week high on January 13. Since September 19, GM share prices have fallen by 19%. This month,...
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