Whether or not you intensely follow the stock market, you’ve likely heard of General Electric. Founded in 1892, General Electric recently stood as the oldest company listed on the Dow Jones. General Electric operates through multiple segments including healthcare, energy, oil, gas, and transportation. In addition, General Electric has been named on many of Fortune’s top companies lists. That being said, a recent development shocked many within the business world.
It was officially announced that General Electric has been kicked out of the Dow Jones industrial average. This is notably shocking due to the fact that General Electric was the last original member of this group. During Monday, General Electric stock dropped 1.5%. However, this small drop was only the final stages of a company that has long been reporting negative numbers. Investor’s Business Daily reports that General Electric stock dropped 45% during 2017.
During the early 2000s, stock in General Electric was reaching all-time high prices, nearing $50 plus per share. Stock prices for General Electric have been consistently dropping since summer of 2017. On June 19th, 2017, General Electric stock was trading at $28.13. By the end of today’s market numbers, it had settled at a price of $12.95. This isn’t to say that General Electric didn’t try to overcome these struggling numbers. General Electric notably tried restructuring their company by hiring and replacing CEOs at a rapid pace.
As a result of General Electric being forced out of the Dow Jones industrial average, another company will soon be replacing it. The company set to replace General Electric is Walgreen’s, a company formed in 1901. Since the Walgreen’s company was started, it’s served as of the most popular pharmacy chain stores within the United States. Whether or not as a result of Walgreen’s being named as Dow’s new addition, the stock did jump 3% while Tuesday’s market day came to an end.
To summarize, General Electric will no longer be a company listed within the Dow Jones industrial average. The company’s stock price reached a record low and has been struggling for the past few years. Walgreen’s will be the company replacing General Electric in the Dow Jones industrial average.