Did GM Just Kill the Best Reason to Own the Stock?
From Nasdaq: 2025-04-30 14:11:00
General Motors (NYSE: GM) released its first-quarter earnings, announcing a delay in the earnings call due to uncertainty around tariffs. The company reported a 2.3% increase in revenue to $44 billion and raised its quarterly dividend to $0.15 per share. However, GM suspended guidance and share buybacks, causing its stock to fall. The decision to halt share buybacks may dampen the bull case for the stock, signaling a lack of confidence in profitability. Uncertainty remains regarding the suspension, which could impact investor sentiment.
GM has historically engaged in share buybacks, but the recent suspension raises questions about the company’s financial outlook. The move comes after GM disbanded Cruise, its autonomous vehicle subsidiary. The decision to pause buybacks could be a bearish signal for the stock, especially without a detailed explanation. Investors should carefully consider the implications of this development before investing in General Motors. The Motley Fool’s Stock Advisor team has identified 10 top stocks for investment opportunities, with General Motors not making the list.
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