- Summary:
- The GM share price has fallen steeply after the company provided a negative forward outlook for its operations for the rest of 2021.
The General Motors share price fell steeply on Wednesday despite positive earnings that beat market expectations.
The dampener for investors was the uncertain outlook offered by the company as a result of the global shortage of semiconductors and the rising cases of the delta variant of COVID-19.
GM reported adjusted earnings of $1.97 from March to 30 June, which was a vast improvement from the pandemic-induced loss per share of $0.50 for the same period a year earlier. This number also beat estimates of $1.85. Revenues more than doubled from $16.78 billion to $34.17 billion, also exceeding expectations.
Despite raising its earnings projections, the company said it was expecting COVID-19 and the semiconductor shortage to serve as headwinds to its forecasts. This drove the GM share price down steeply by 8.69% on the day.
Technical Outlook for GM Share Price
Price is now testing support at the 52.50 price mark. A breakdown of this price level opens the door towards 51.87, with 50.20 serving as additional support.
On the other hand, bulls will benefit from a bounce on the 52.50 support, targeting 54.17 initially. A push towards 56.00 cannot be ruled out if bullish momentum is strong, with 56.82 serving as additional resistance if the advance continues.
GM Share Price: Daily Chart
