General Motors Surges on Buyback Plan Amid Strong Earnings
General Motors (GM) shares rallied 7% to an all-time high after announcing a $6 billion stock buyback program alongside robust Q4 earnings. The automaker reported adjusted EPS of $2.51, beating estimates of $2.28, while revenue dipped slightly to $45.29 billion. CFO Paul Jacobson emphasized the company's cash Flow strength, calling GM 'one of the most valuable stocks' based on free cash flow yield.
The buyback signals confidence in GM's undervalued shares, with Jacobson noting double-digit free cash flow yield. CEO Mary Barra credited WHITE House tariff offsets for boosting profitability, with full-year tariff exposure at $3.1 billion—below earlier projections of $3.5-$4.5 billion.
Tuesday's 9% surge places GM near the top of its 52-week range, trading above its 200-day moving average. The move reflects investor Optimism about capital allocation and resilient auto demand despite macroeconomic headwinds.
