GE’s Second Act: Worth the Turbulence?

Right. General Electric. It’s a name that conjures images of…well, of things my grandfather used to fix. And then complain about. It’s a legacy, isn’t it? A bit like that slightly embarrassing family heirloom you pretend to appreciate. But here’s the thing: it’s not just a legacy anymore. It’s… complicated. And, as someone who spends their days trying to predict where money will go, I’m finding it increasingly interesting. They’ve done a thing. A split. Three separate entities. Honestly, it felt a bit dramatic, like a particularly messy divorce, but let’s see if it works.

For over a century, GE was… everything. Power, healthcare, aviation. They tried to be all things to all people. Which, looking back, feels a bit greedy, doesn’t it? It inevitably led to a spectacular unraveling. A slow-motion car crash, as some people so eloquently put it. I prefer to think of it as a cautionary tale. A reminder that even giants can fall, and diversification isn’t always your friend. The share price took a proper hammering, naturally. But here we are. A phoenix, of sorts. Or maybe just a slightly less flammable version of the old GE.

The Three Flavors of GE

So, what did they do? They chopped it up. GE HealthCare Technologies, GE Aerospace, and GE Vernova. Three distinct companies. Honestly, it felt a bit like they were trying to confuse us all. But, after digging through the numbers, I’m starting to see a method to the madness. HealthCare is… steady. Predictable. Not exactly thrilling, but not a disaster either. It’s up 25% since the spin-off, which is…fine. It’s outpaced some things, underperformed others. It’s…existing. Let’s be real.

But the real excitement, the stuff that makes me actually check my portfolio before bedtime, is happening with Aerospace and Vernova. Aerospace – jet engines, turboprops, all that fancy flying stuff – is up a cool 100% since the split. 100%! I’m starting to wonder if I should invest in a pilot’s license just to feel closer to the action. And Vernova – power generation, grids, the stuff that keeps the lights on – has soared an even more ridiculous 400%. 400%! I’m starting to suspect they’ve discovered a secret source of energy. Or maybe they just have a really good marketing team. Either way, it’s impressive.

Last year alone, Vernova jumped 95%, and Aerospace managed a respectable 85%. The S&P 500? A mere 17%. I’m not saying it’s a sure thing, but it’s certainly got my attention. The question is, can they keep this up? Can they defy gravity and continue to outperform the market? Honestly, I’m placing a cautious bet that they can.

Why Aerospace Might Actually Fly

The aviation industry is a mess, let’s be honest. Demand is up, but supply is… not. Planes are grounded, parts are backordered, and everyone’s scrambling to keep things running. It’s a perfect storm of chaos. And that, surprisingly, is good news for Aerospace. They’re basically holding all the cards. They control a significant chunk of the engine maintenance and repair market, and that’s where the real money is right now. Bain & Company says shop turnaround times are up 35% for legacy engines and a frankly terrifying 150% for new ones. It’s a bottleneck, and Aerospace is right in the middle of it. They’re forecasting double-digit revenue growth for the next few years, and frankly, I believe them. It’s almost… predatory. But effective.

Vernova and the AI Power Grab

And then there’s Vernova. They’re not just building power plants; they’re building the infrastructure for the future. Their backlog is up $6.5 billion to $26 billion, and they’re expecting it to hit $200 billion by 2028. That’s a lot of power. And it’s not just about keeping the lights on. It’s about powering the AI revolution. Data centers are hungry beasts, and Vernova is providing the fuel. They’ve even doubled their quarterly dividend and boosted their stock buyback plan. It’s like they’re trying to bribe us into liking them. And, honestly, it’s working.

So, is General Electric back? Well, it’s not the same GE. It’s three separate entities, each with its own strengths and weaknesses. And while there’s always risk involved in investing, I think Aerospace and Vernova are worth a closer look. They’re not just surviving; they’re thriving. And in a world that’s constantly changing, that’s a rare and valuable thing. Now, if you’ll excuse me, I have a portfolio to rebalance. And maybe, just maybe, a pilot’s license to research.

2026-01-25 18:03

The Three Flavors of GE

Why Aerospace Might Actually Fly

Vernova and the AI Power Grab

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