General Electric stock (NYSE: GE) dropped 5% on Wednesday, trading as low as $266, as the industrial sector came under pressure.
The plunge came as the General Electric stock had recently shown an upbeat trend and was pushing toward its 52-week high of $281.62, and it looks like some investors decided to take profits, worried about the broader economy and sector risks.
The pullback was driven primarily by profit-taking after a strong rally this year and amid growing concerns about the global industrial sector’s outlook.
Trading was busier than usual, nearly one-and-a-half times the average daily volume, with both retail and institutional investors actively reacting to the move.
Before the recent drop, GE’s shares had climbed more than 68% year-to-date, helped by strong demand in its aerospace division as airline travel and maintenance contracts picked up.
The company posted solid Q2 2025 results, with revenue up 21% year-over-year to $11 billion and adjusted earnings per share rising 38% to $1.66.
The aerospace segment drove much of the strength, with service revenue up 30%, giving investors confidence in GE’s ongoing recovery and growth path.
CEO H. Lawrence Culp Jr. reiterated the company’s focus on operational efficiency and free cash flow, projecting $7.1 billion to $7.5 billion for the full year 2025.
Why General Electric stock slip today?
General Electric stock fell on Wednesday, largely due to investors taking profits after recent gains and broader weakness across the industrial sector.
The Dow Jones Industrial Average dropped nearly 1%, pressured by slowing global manufacturing, ongoing inflation, and a strong dollar weighing on industrial exports and equipment orders.
Other industrial names, including Caterpillar and 3M, also slipped. GE was unable to hold above the $275 level, which added to short-term selling pressure.
Trading was notably heavier than usual, with volumes around 1.5 times the 30-day average, as both retail and institutional investors adjusted their positions.
Even with the pullback, GE’s market value remains healthy, above 283 billion.
Why you should press ‘Buy’?
Even after a dip on Wednesday, analysts remain largely positive on General Electric stock.
FactSet shows 18 of 25 analysts still rate the stock as a “Buy” or “Overweight,” with a 12-month target around $295, about 10% above current trading levels.
Goldman Sachs points to the aerospace division as the main driver, helped by steady airline maintenance demand and rising defense spending.
Morgan Stanley notes that the company’s restructuring and focus on higher-margin areas, like energy grids and healthcare technology, could continue supporting earnings growth.
There are still some concerns. UBS and a few others say GE’s valuation is high compared with peers, which could make it more vulnerable if inflation or interest rates rise.
Most analysts see the August 13 decline as a short-term setback rather than a change in fundamentals.
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