Consumer discretionary

Here Is What Is Happening At General Electric Company (GE)

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An eye over the current situation at General Electric and how it will shape investors’ decision

General Electric Company (NYSE:GE) has hugely divested its financial business and is moving towards hard core industrial business, which it believes is the most lucrative. Its strategy involves hard core focus on the most profitable segment and adopts lean technology, such as Internet of Things (IoT) and smart cities.

The acquisition of Alstom and focus on IoT will greatly aid the company in fulfilling its goal of achieving a high industrial business. This is because in the fast changing world of technology and industry, important companies such as General Electric to evolve quickly to cater to changing demands.

The company is actively working on a project to make cities smarter. It has signed a partnership with Intel Corporation (NASDAQ:INTC) to make cities more connected and instrumental at the same time. The concept of smart buildings starts with smart factories and data collection from IoT.

Recent Developments

General Electric stock rose 0.03% to $31.37 at the closing bell on Tuesday. The company has a market capital of $282.28 billion. It trades in the 52-week range $23.68-33.

Yesterday, the company announced the joining of the new Chief Executive of GE Capital, Richard Laxer. GE Capital will now consist of three divisions: GE Capital Aviation, Energy Financial Services, and Industrial Finance. Richard Laxer is currently serving as the chief executive of GE Capital International.

Moreover, General Electric is going in favor of coal again, an idea which it was against previously due to environmental pressures. According to the company, they can make huge profits from coal power plants. There is huge potential coming from developing countries, which it wants to materialize. According to Energy Information Administration (EIA) two thirds of the growth coming from coal powered plants will come from India and China.

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