GM is making more money without selling more cars
GM is making more money without selling more cars
I’m looking at U.S. car stocks this week because I want to mix things up a little in my portfolio, and caught my eye. Sales in the U.S. were down 5.5%, but revenue still hit $50 billion and earnings jumped 32%. Those big, pricey trucks and SUVs are clearly helping. But I do wonder what happens if people start holding off on buying a new car because everything is so expensive right now.
The $20 billion buyback sounds nice, and GM raised its cash flow forecast, but I’m not ready to buy just because those numbers look good. The stock still dropped after earnings, so there’s something investors aren’t loving about the outlook. I’m checking out and , too, because I’d rather compare a few automakers than put all my hopes on one. Ford has its truck business, and Toyota gives me more international exposure. Now I just need to figure out which one actually makes sense to buy at today’s price, instead of getting excited and jumping in too fast
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GM’s numbers look solid, but I’d be watching consumer demand closely. No point chasing the buyback hype if car sales keep slowing down.
Right, that’s my worry too. Those big trucks and SUVs bring in good money, but not everyone can afford a new car right now. I’m trying not to get distracted by the buyback and big earnings numbers before figuring out whether people will keep spending like this.
