Yahoo Finance Live breaks down several of the day’s trending stories.
Video Transcript
RACHELLE AKUFFO: Well, we’re going to head into our Triple Play now in the three stocks that we’re watching. So my pick to kick us off is General Electric, ticker symbol GE. Now, adjusted profit and revenue beat to drown out the disappointing first quarter, and cautious four-year [AUDIO OUT]. About 10 and 1/2%. It was down about 11% in intraday trading as well.
Now, this actually makes it the biggest sell off in about two years. Its aviation and health care segments did grow, although health care still fell short. Its power and renewable energy segments also fell, and by more than expected. Now, as part of the challenging market environment for the company, CEO Larry Culp said supply chain issues, the Russia-Ukraine War and the China COVID impact adversely affected revenue in the quarter by about 6 percentage points.
Now, company executives say they expect those same pressures to continue to wait into the second quarter, and that while adjusted Q2 free cash flow will remain negative, it should be better than Q1. So not a lot to cheer about there for GE.
BRAD SMITH: Yeah. Taking a look at this past five-year chart, it really kind of weaves in many of the things that you mentioned continuing to be a headwind for GE, the executive changeovers, the supply chain issues, and then additionally, being able to sell off some of those other business units really being the only boon to when we saw some of their shares move higher previously.
The roadway and the road map for this company going forward from here, there’s a lot of different categories both in the consumer tech side, and then additionally, in some, as you were mentioning, the aviation side as well. Larger question looming, though, is when they will be able to still get back into the good graces of investors for an extended period of time. And that is not the case here right now as we’re seeing the stock being traded out of here on…