Why General Electric Stock Is Down Today
It was a busy day of announcements for General Electric (NYSE: GE), and investors generally didn't like what they heard. Shares of GE traded down 6% on Wednesday morning on disappointing 2021 guidance and GE's moves to restructure itself after years of underperformance.
Larry Culp was hired as CEO in October 2018 with a mandate to reverse a slide that had seen the stock lose more than 75% of its value from its heyday. His initial efforts have largely been well received, and in an investor presentation on Wednesday, the transformation moved into hyperdrive.
GE confirmed plans to sell GECAS, its aircraft leasing operation, to AerCap Holdings (NYSE: AER) in return for a 46% stake in AerCap and about $24 billion in cash. That money will be used to pay down debt, which should go a long way toward healing the company's balance sheet.
Source Fool.com
