How did that really work out for GE Aerospace? Last time I looked GE Aero has underperformed the market and peers with revenue declining more than 3% per year for each of the last three years. Over the last ten years they are down 50% in revenue. ouch.
How would a break up end? just look at GE.
Don't read too much into market cap/stock price. That is more of a bankers' mood ring more than anything else about a company.
The foolish chase for short term stock gains is the primary root cause of why GE broke up, and why Honeywell is in the quagmire it is in today.
Examples to support my assertion:
Tesla - $1200 B market cap - Annual profit - $17B
Toyota - $290B market cap - Annual profit - $34B
GM - $54B market cap - Annual profit - $24B
And yet GE Aero market cap (value of the entire company) is higher than the entirety of Honeywell International.
GE's business strategy gave them no choice in the end.
Honeywell is still following the old GE model to a tee so work back from there :)
Nice to hear GE Aero is reverting back to a proper business model guided by long term growth and vision and not short term heists.
GE Aero didn’t start trading independently until April of 2024 (Vernova didn’t spin off until then).
Maybe not. They seem to be investing in longer returns as evidenced by huge growth in our area (Cincinnati and Dayton OH). The underperformance maybe due to them getting caught up for decades of decline.