- GE is having a bad year, but new investors are flocking to the stock in droves.
- The company is facing multiple headwinds due to the coronavirus pandemic.
- There’s chatter that the 128-year-old conglomerate is on the brink of bankruptcy.
General Electric (NYSE:GE) is having an unforgettable 2020. The stock is down nearly 50% year-to-date after trading at $5.48 per share Thursday, its lowest level in almost 30 years. But it’s not all bad news for the global industrial giant as young investors are bottom picking the stock.
GE Becomes Second Most Popular Stock on Robinhood
General Electric may be a 128-year-old company, but it’s the young people who are seeing the value in its shares. Robinhood, a platform whose 6 million customers are mostly millennials, reports that its users flocking into GE.
Shares of the multinational conglomerate are owned by over 740,000 Robinhood users, good enough for a runner-up finish in the popularity race. GE is just behind Ford (NYSE:F), a stock that is also having a nightmarish 2020.
A look at the ten most popular stocks on Robinhood suggests investors favor companies that have taken a nosedive this year. Except for Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), all stocks in the top ten are in a strong downtrend.
New investors may be fond of GE, but there’s no certainty that the love will be rewarded, considering that the stock is facing headwinds in this time of crisis.
GE Is Succumbing to the Economic Fallout of COVID-19
Rumors are swirling in the investment world that it’s only a matter of time before General Electric files for bankruptcy. The reasons are quite obvious.
In April, the company furloughed half of its engine manufacturing staff. With air travel nearly grinding to a halt, demand for GE’s jet engines has plunged. GE’s Capital and Power segments are suffering due to the low-interest-rate environment and economic slowdown.