Please ensure Javascript is enabled for purposes of website accessibility

Why General Electric Stock Rose Sharply Today

By Joe Tenebruso - Feb 24, 2021 at 3:18PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A technology collaboration could lead to new business ventures.

What happened

Shares of General Electric (GE 0.28%) climbed on Wednesday after the industrial giant announced a strategic partnership with Altair (ALTR 0.52%). As of 2:55 p.m. EST, GE's stock price was up more than 5%.

So what 

As part of the deal, Altair purchased Flow Simulator from GE Aviation. The simulation and artificial intelligence technology provider will further the development of Flow Simulator's software, which helps to optimize the design of fluid systems and machines. GE will have access to Altair's full suite of software, and the two companies will work together to explore new use cases and the possibility of additional joint ventures.

A person is pointing to an upwardly sloping stock chart.

General Electric's share price popped on Wednesday. Image source: Getty Images.

"We value our strong relationship with GE Aviation as we join forces to drive innovation for aircraft engines and beyond," Altair CEO James Scapa said in a press release. "Utilizing Altair's simulation and AI-driven approach to innovation, there is great potential to expand Flow Simulator's capabilities and make it available to new industries focused on simulating systems models including automotive, electromobility, battery, defense, and renewable energy."

Now what

Analysts are growing more positive about GE's turnaround strategy. On Monday, Goldman Sachs analyst Joe Ritchie reiterated his buy rating on GE's stock and lifted his price forecast from $14 to $15. Ritchie highlighted GE's efforts to bolster its balance sheet and improve its free cash flow generation. If the industrial conglomerate can continue to make progress in this regard, more gains could lie ahead for investors. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

General Electric Company Stock Quote
General Electric Company
$75.46 (0.28%) $0.21
Altair Engineering Inc. Stock Quote
Altair Engineering Inc.
$52.30 (0.52%) $0.27

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.