General Electric (NYSE:GE) is breaking into pieces — but in a good way. This morning, GE stock is heading higher as General Electric just revealed the brand names of its three spin-off business units.
For many years, General Electric was famous for manufacturing light bulbs and household appliances. After leadership changes and some tough times for the company, General Electric shifted much of its focus to the company’s aviation segment. However, the company also generated revenue from its healthcare and energy businesses.
Wall Street has anticipated General Electric’s division into multiple companies for a while now. So, it’s huge news that General Electric is providing the names of its three spin-off units. These will be GE HealthCare, GE Vernova and GE Aerospace. GE Vernova will include General Electric’s Renewable Energy, Power, Digital, and Energy Financial Services businesses. Meanwhile, GE Aerospace will be an aviation business.
Move Over, GE Stock — There’s a New Stock Coming
In case that announcement wasn’t enough, General Electric has another big reveal. After the spin-off of GE HealthCare, that company will be listed on the Nasdaq Global Select Market under the ticker symbol GEHC.
As for good old General Electric, that will effectively become GE Aerospace and will focus on aviation. There’s also a re-branding in the works, apparently, as GE Aerospace will have a new “atmosphere blue” brand color representing “the upper limits of the atmosphere.”
Interestingly, General Electric didn’t mention new a stock ticker for GE Vernova. Could that be in the works? You’ll have to stay tuned to find out. Be patient, though, as the tax-free spin-off of GE Vernova reportedly won’t take place until early 2024.
As for GE stock, today it’s in the green and this seems to suggest that Wall Street approves of the spin-off details. In due time, traders will have to say good-bye to the old General Electric, and hello to three exciting new business ventures.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
