General Motors’ Market Value Below $4 Billion

General Motors’ market value stands below $4 billion at its current share price of $5.72, a far cry from its 2000 market peak of $56 billion and $94.62 per share, according to CNBC. As it stands today General Motors is in serious threat of collapse, despite the efforts of many executives and investors, unless the government intervenes.

It is not out of the question for the government to prop up a failing company – it already bailed out most of Wall Street. But aside from a $25 billion emergency package pushed through Congress last month, there has been little serious discussion about Saving GM or the other Detroit giants.

The concept of General Motors falling into bankruptcy, or worse dissolving completely, is mind boggling. For some perspective, compare the market value of GM with those of other companies. General Motors has less than half the market value of cosmetics maker Avon, it is less than one fifth the value of online auction-site eBay, and is less than one tenth the value of McDonald’s.

For even starker contrast, the market cap of Exxon-Mobil, the world’s largest oil and gas company has a market capitalization well over 100 times greater than General Motors. The fall of GM has been fast and furious, and there currently seems to be no end in sight. Investors are abandoning Detroit in droves amid fear that the entire industry will fall flat in the United States. The collapse of GM, if it ever comes to pass, could be a harbinger of things to come for Ford and Chrysler as well. With the economy on the rocks, the Detroit Big Three seem headed for the chopping block.

Source CNBC:

How the mighty have fallen.

At one time, General Motors was considered the pre-eminent US corporation, a giant among giants.

But now, on news that Goldman Sachs reduced the company’s rating to “sell”, GM’s shares have plummeted to less than $12, the lowest level since 1955.

That means the world’s largest auto maker has a stock market value of only about $7 billion. That compares with a market cap of about $56 billion in 2000, when the stock was at its all-time high of $94.62 a share.

Source: Economy in Crisis

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