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- 1 General Motors Company posted its quarterly earnings recently.
- 2 GM stock fell by 7% after showcasing an upward trend.
- 3 General Motors Company expects positive earnings in the future.
The American automotive manufacturer company, General Motors Company (NYSE: GM), posted quarterly earnings in July end. Despite the company posting positive performance throughout the quarter which reflected in the earnings results too, GM stock price did not catch up with optimism.
Since the earnings release, GM stock price fell over 7% after an upward streak that lasted for three days.
General Motors posted $44.75 Billion in revenue, an increase of 25% on a year-over-year basis. The earnings per share (EPS) for the vehicle company was $1.91, better than last year’s $1.14. GM posted a net income of $2.57 Billion, over a 50% increase from $1.69 Billion in a year.
The company produced 50K electric vehicles (EVs) in the North American region, meeting its target for the first two quarters of 2023. It expects to stretch the target to double it by the end of this year.
Still, GM stock price tumbled for reasons such as an unexpected charge of $792 Million due to the recall of the Chevrolet Bolt EV model.
The Detroit automaker puts forward a positive outlook for the company on a yearly time frame. It expects earnings to stay between $12 Billion and $14 Billion. The free cash flow estimate has also increased from $5.5 Billion to $7.5 Billion earlier to $7 Billion to $9 Billion now.
GM Stock Price Movement
General Motors’ stock price closed the last intraday trading session at $36.26 following a 1.5% drop during the day. With the consistent fall in price, GM stock price is closing to the immediate support at $36.
Before the earnings, GM stock traded above the 50-day and 200-day exponential moving averages. Moreover, the moving averages saw a golden crossover cementing a bullish trend in the stock price movement.
However, GM stock fell below the moving averages defying the possibility of an uptrend.
If it breaks the price level of $36, it could enter the zone between the $32 to $36 price range, which is acting as a strong support for General Motors’ stock price.
On the flip side, if GM stock price rejects the downtrend and changes the course upwards after testing the $36 support, it is likely to consolidate further. The crucial metrics do not suggest any significant up move or trend reversal in the near future.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
