Today, General Electric stock is trading at around $30 per share. The head of the organization, Jeff Immelt, took control of the company in 2002, when GE was making $15.1 billion per year. Today, the organization is making roughly $16.9 billion per year, and many analysts are confident that the time is ripe for a further rise in GE stock.
Diversified Operations
Understanding General Electric is a little harder than it might seem. Unlike most companies, GE has split its operations into literally every sector of the modern industrial economy. With divisions of Healthcare, Transportation, Financial Services, Aviation, and more, GE has become a “blue-chip” stock, highly trusted by the globe’s most esteemed financial analysts. If one division fails, the company still has many investments and sources of revenue to fall back on.
An American Company
Due to its diversified operations, analysts are quick to state: “America is GE,” or “GE is America.” Such is the relationship between the company and its homeland. Nevertheless, over the past decade, GE has often come under heavy fire by American journalists claiming that the company is increasingly laying off its American employees so as to higher cheaper labor in different parts of the globe. Another reason GE has become synonymous with America is because, as mentioned above, its operations have a strong impact on every sector of the American economy.
Lifting the Country out of Crisis
Following the financial crash of 2008, the US government realized it needed to create a comprehensive plan to reduce the unemployment which came about as a result of the crash. In 2011, President Obama hired Jeff Immelt, GE’s CEO, to head the “President’s Council on Jobs and Competitiveness.” Seeing as Immelt was running a successful organization operating America’s variety of sectors, Obama realized that he would be the right man to lead the team, and improve the US economy. The group’s final meeting was held on January 17, 2012, and its impacts are still felt in the US today. Due to the lack of legislation to renew the council, the team was disbanded. However, today, the US economy seems to have fully recovered from the crash, with the S&P 500 reaching new heights in the last quarter of 2014.
Summary
Relative to the tech giants which have risen in power dramatically since the new millennium, GE’s story is starkly different. Established in 1908, GE has taken risks, but not significant ones. Recently, insiders have discussed Immelt’s musings about who will be his successor. But, until Immelt decides to step down, nothing is set in stone. In short, GE’s board members are quite content with Immelt, seeing as he has sustainably positioned GE to succeed in the ever-evolving economy of tomorrow.
