The Apple Car Is Coming and Tesla Had Better Watch Out

Motley Fool

Why GE’s Latest Move Makes It a Buy

General Electric’s (NYSE: GE) announcement earlier this month that it planned to separate into three different companies certainly surprised the market. According to that thinking, when it’s broken up, the constituent parts should trade at higher valuation multiples than their implied valuation as part of a conglomerate. In fact, from management’s perspective, the purpose of the breakup is to allow the businesses to be run with greater focus and have capital structures more tailored to their own distinctive “strategies and industry dynamics,” as CEO Larry Culp put it in the investor update.