GM (GM) popular stocks broke out after the latest income report on Tuesday.
The stock giant's stock fell as up to 11 % on Tuesday and fell 9 %. This is the worst day since March 2020. The stock decreased by 1 % in the noon trading on Wednesday.
Due to GM's rapid reduction of billions of dollars and repurchase stocks, the stock rose 50 % in 2024. As a result, the estimation of analysts was defeated.
BOFA automatic analyst, John Murphy, explained to customers on Wednesday: "For various reasons, the stock on Tuesday was greatly hit, but the lack of new stock repurchase announcements was vaguely visible."
GM repurchased more than $ 7 billion in stocks in 2024 and repurchased more than $ 11 billion in 2023. The repurchase played a key role in improving the profit of general vehicles by reducing stocks of circulating shares and expanding the stocks that support higher stock prices.
Although Murphy believes that the harsh market response is too much, he lists many reasons why GM's stocks can stay in the fine box in the short term.
“我们听到了许多因素似乎使市场感到不安的因素：1）政策不确定性，没有变化，而没有变化- 关税，IRA（降低通货膨胀法）激励措施，EPA/CARB ACC II； 2）第四A negative mixed quarter and worry that electric vehicles in 2025 will suffer more affected. 3) The price drops greater than -1 %, to -1.5 %, 4) The prospects of the plane volume are disappointing, 5) Lack of new repurchase authorization authorization (It will be announced soon) "" "" "" "" "
Tariffs are especially hung in the automotive industry and their valuations.
UBS researchers estimate that the automotive industry is responsible for 26 % of imports from Mexico to the United States and 12 % imported from Canada.
GM produces high -profile pickup trucks in Mexico, and relies on the country to manufacture electric vehicles, such as Chevrolet Blazers and Cadillac Optiq. It has five large assembly plants in the two countries.
Competitors Ford (F) produced 12 % of products in Canada and Mexico.
"We have done a lot of planning and plans, we know that there can be leverage that can minimize the impact. But if you have the opportunity to talk to the president, I really believe that he wants a powerful manufacturing industry, because this is good for the economy. Mary Barra, chief executive, told Yahoo Finance on Tuesday (above).
General Motors said that it assumed a "stable" policy environment. As far as Murphy is concerned, this may cause investors to witness any stability other than the new Trump administration.
In addition, GM's EPS guidelines for 2025 were US $ 11 to 12, and in the consensus forecast at a price of $ 10.75, it was predicted in advance, but it had no effect on additional tariffs.