Stock research: GE aviation - lowest point in 30 years

Introduction

It is so interesting to learn so many financial data about GE as a business. I like to think about purchase more of GE stocks, and then hold it for 3-5 years at least. 

GE stock

Here is the article. 

Here are highlights:

1. GE aviation is one of the largest makers of jet engines and components in the world
2. GE aviation permanent 25% job cut
3. GE aviation and GE healthcare 
4. GE aviation first quarter with revenue of $6.9 billion 

GE Aviation Is Grounding GE Stock

Analysts agree that the stock is getting pummeled from all sides — but its ties to the airline industry are particularly dangerous. Airlines have come to a standstill thanks to the closure of international borders and public fears of flying amid the pandemic.

GE Aviation is the company’s largest business segment, with revenue of $6.9 billion in the first quarter. The next biggest segment is GE Healthcare, which added $4.7 billion in revenue during the first three months of 2020.

GE Aviation is one of the largest makers of jet engines and components in the world, and with planes sitting idle on tarmacs, the business unit has been brought to a grinding halt. GE stock fell sharply last week after Boeing (NYSE:BA) CEO David Calhoun predicted that at least one major airline will be out of business by year’s end. Unfortunately, Calhoun’s warnings didn’t stop there. He also predicts that the U.S. airline industry will need a minimum of five years to recover from the  pandemic.

The fact that GE Aviation CEO David Joyce announced “permanent” job cuts — reducing its workforce by 25% — only added to the gloomy sentiment. Plus, Warren Buffett said he has sold all of his airline stocks.