The Fall and Rise of an American Icon: The GE Story
There was a time when General Electric (GE) was synonymous with American ingenuity and prosperity. Founded by none other than Thomas Edison in 1892, GE grew into the world’s largest company under the stewardship of erstwhile CEO Jack Welch. Fast forward to the 21st century, the scenario drastically shifted. The company, once a household name across the United States for its diverse offerings – from TVs and light bulbs to financing your home – started facing unprecedented challenges.
The Decline
Entering the 21st century, GE found itself morphing into a behemoth that was everywhere yet nowhere. The problems began to surface when the company, under the illusion of maintaining its stock prices, opted for share repurchases and dividends without addressing the mounting debt. The debt crisis was primarily fueled by poorly timed deals and an unwanted expansion into various sectors including the risky subprime mortgages, which contributed significantly to its downfall.
By 2018, the consequences of these missteps became glaringly evident. GE was unceremoniously booted from the Dow Jones Industrial Average, a position it had held with pride since 1907. This act symbolized the end of an era; GE, an emblem of American industry, had been replaced by Walgreens Boots Alliance, signaling changing times and priorities.
The Turning Point
In the midst of chaos, a new hope emerged with the appointment of Larry Culp as CEO in 2018. Recognizing the root problems, Culp initiated a robust strategy centered around cutting debt through the sale of GE’s numerous divisions. The selling spree included offloading NBC to Comcast in 2013, its appliances division to Haier in 2016, and, significantly, its iconic light bulb unit in 2020. This was more than just shedding weight; it was a purposeful move away from GE’s conglomerate past to focus on its future in healthcare, aerospace, and energy generation.
The Split and Surge
November 2021 marked a historic decision as GE announced its split into three separate entities: GE Healthcare, GE Aerospace, and GE Vernova. This strategic move not only emphasized GE’s pivot towards leaner operations but also reinstilled faith amongst its investors. GE Healthcare began trading in January 2023, rejuvenating GE’s presence in the stock market. Following this, stocks of the two remaining companies made their debut on U.S. markets, witnessing a promising surge. GE’s shares, which had been languishing, saw a nearly 95% rise in 2023 alone, followed by an additional 37% increase this year.
GE Aerospace, retaining the historical GE stock symbol, symbolizes the new era of GE with Culp at its helm. The focus on aerospace, coupled with a streamlined approach towards its other operations, suggests a future where GE could once again fly high.
American Icon Reimagined
The transformation of GE from a sprawling conglomerate to a more focused and financially healthier entity is a testament to strategic leadership and the willingness to confront hard truths. While the company’s journey had its share of turbulence, the recent turn of events points towards a brighter future. GE’s story from dominance to decline and its ongoing resurgence is not just about a company but reflects the evolving priorities and resilience inherent in American industry.
As GE continues to adapt and innovate, it stands as a beacon of hope and a lesson in transformation, reminding us that even the mightiest can falter but with purposeful action, they can rise again.
Mehek 
Priyanka