After the new positive outlook from General Motors, automotive stocks rose. Among these, Stellantis (STLA) stands out.
Stellantis (STLA) shares moved higher in the Milan stock market, heading towards a first sign of recovery of the stock market losses that have affected the stock since the beginning of the new year. There is a lot of news regarding the automotive group, but the focus of Tuesday remains the release of General Motors (GM) earnings. Faced with this bullish push, the entire market segment recorded a positive performance.
A look at General Motors (GM) results
The results shared by General Motors (GM) did not highlight any particular positive news for 2023 and the year ends with a fourth quarter (Q4) which presented the group’s investors with an adjusted profit down by 54%, equal to $1.8 billion. The reasons for this situation were partly associated with the strikes organized last autumn by the UAW (United Auto Workers) union, which generated significant disruptions and attracted media attention.
Not surprisingly, looking only at the 2023 balance sheet, the surge in GM’s share price seems partly inexplicable, given that the shares have recorded a surge of more than 6% since the first hours of trading. Other automotive stocks also reacted positively. Taking Stellantis (STLA as a reference), this moved close to 4% performance on January 30th. Also in this case, as in other stock market sectors, the outlook shared by GM stimulated the bullish bets, influenced by the growth of the US economy, a factor that would have a positive impact on car sales. A direct reference is made to the sales of electric cars, with the forecast of an increase aimed at reaching 10% of the US market.
This represents particularly stimulating news for the entire sector, despite the conflicting opinion recently expressed by the CEO of one of the most prominent electric car brands of the moment, Elon Musk, who instead predicts a slowdown.
Stellantis (STLM) rallies again
As we reach the end of the fourth quarter earnings season, one company that stands out is Stellantis (STLA). Although they have not yet released their results, which are expected by February 15th, the investing public is very confident about the company’s prospects for the new year.
The STLA stock therefore moves again above the particularly relevant technical threshold of €20, giving a strong bullish signal, after more than a month of a constant bearish trend, influenced by the negative dynamics of the automotive sector.
Original article published on Money.it Italy 2024-01-30 17:25:24. Original title: Rally di Stellantis dopo i risultati di General Motors
