It’s the start of a new chapter for General Electric. For decades, the international conglomerate has been a staple of U.S. industry, adapting to changing economic tides and successfully conquering new frontiers. GE enjoyed the distinction of being one of the world’s most valuable public companies for years. But now it has split into three separate companies: GE Vernova (NYSE:GEV), GE Aerospace (NYSE:GE) and GE Healthcare (NASDAQ:GEHC). Today marks the first trading day for the newly minted GEV stock.
Earlier this morning, the decision to split into three stocks didn’t seem to be going well. All three were down today and GE stock — which now represents GE Aerospace — plunged some 20%. However, all three names now seem to be performing better as markets adjust. Back in February, momentum for the spinoff already pushed shares to impressive heights. But the new GEV stock warrants a closer look as it presents new opportunities for investors.
GEV Stock: What to Know
- General Electric approved the GE Vernova spinoff in February 2024 with the expectation that GEV stock would launch today, April 2.
- Headquartered in Cambridge, Massachusetts, GE Vernova is a spinoff of General Electric’s energy sector assets.
- As The Boston Globe reports, GE Vernova’s new status as a standalone company “represents a return to the company’s energy roots, making products to generate and distribute electricity for homes and businesses.”
- Prior to the spinoff, GE stated that it expected to see “further revenue, profit, and free cash flow growth for both GE Aerospace and GE Vernova” this year.
- GE Vernova will have a workforce of roughly 80,000 employees who will help lead the company’s energy transition.
- With the split, Morningstar Director of Resources Equity Research Joshua Aguilar points out that investors can now put their money into more specialized fractions of the company with the new GE stock and GEV stock.
- Morningstar predicts that “GE Aerospace will be worth nearly $140 billion, while GE Vernova will be worth nearly $35 billion on an equity value basis.”
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
