General Electric Company has lost about USD 100 billion in this year. The company which has interests in manufacturing to oil to software had a market cap of USD 279.55 billion at the end of 2016. Its valuation plunged to USD 180 billion, witnessing a massive drop of over 35 percent YTD.
The company which is listed on New York Stock Exchange, lost about 13 percent over the week, owing to a lower than expected quarterly earnings, reported on October 20. The last week was company’s worst performance at stock market since the recession of 2008-09. That means, the company and its investors lost USD 26 billion in five trading days.
The newly appointed CEO John Leonard Flannery Jr. termed the quarterly result which shows the biggest earnings drop in 17 years as “completely unacceptable”.
“It’s also clear from our current results that we need to make some major changes with urgency and a depth of purpose,” said Flannery who joined the company in August. “Our results are unacceptable, to say the least.” Investors are also bracing for a possible dividend cut, which if happens, will be a first since 2009.
The company also adjusted its earnings estimates between USD 1.05 to USD 1.10 a share, a drop from the previous estimation of USD 1.60 to USD 1.70 a share.