Equities

GM just had its worst week in nearly three years, by Bloomberg's count, and the analysts it tracks still aren't saying sell

GM's stock slid amid concerns about a narrower 2026 outlook and rising commodity costs, despite a quarterly beat and a new $20 billion buyback authorization.

By Marcus Rodriguez · Oct 24, 2026, 6:20 AM EDT

Why it matters: GM's guidance midpoint came in below forecasts and costs are rising, and investors focused on that over a quarterly beat and a $20 billion buyback authorization.

For information only, not investment advice. Prices delayed.

Tickers: GM, ALV

General Motors ($GM) shares were down 1.67% at $75.92 as of Oct 23, 4:00 PM ET, at the end of what Bloomberg calls the stock's worst week in nearly three years. Bloomberg puts the weekly drop at 9.6%, its largest since November 2023, and says GM led a wider selloff in automotive stocks on Friday.

How bad the week looks depends on when you checked. An earlier Bloomberg version, published before Friday's open, said the stock had fallen 8% through Thursday's close, on pace for its largest weekly drop since January 2025. Benzinga, writing at 1:19 PM ET Friday, had the shares down 9.9% for the week and on track for the worst week since the one ended March 10, 2023, when the collapse of Silicon Valley Bank shook markets.

Most of the damage came Tuesday, earnings day. The quarter itself beat expectations: adjusted earnings of $3.70 a share against $3.63 expected, and revenue of $50.02 billion against $48.7 billion, according to LSEG data cited by CNBC. GM's board also approved a new $20.0 billion multi-year share buyback authorization, according to the company's earnings release. But GM narrowed its 2026 adjusted EPS guidance to $12.75 to $13.75, from $12.00 to $14.00. The new $13.25 midpoint sits below the $13.41 analysts expected, CNBC reported. CEO Mary Barra warned of "clear external headwinds," and the stock fell 6.8% that day, its worst session since July 2025, Bloomberg reported.

"We think the selloff primarily reflects disappointment with the fact that the midpoint of its updated guidance is below" Wall Street's consensus, CFRA analyst Garrett Nelson said, according to Reuters.

The number worth a second look is costs. GM expects commodity inflation costs of around $2 billion this year, the high end of its previous guidance, including logistics and DRAM memory chips, CNBC reported. CFO Paul Jacobson said costs for steel, aluminum and logistics rose sharply over the last two months, and that if they don't ease from recent levels, they could weigh on GM's bottom line by $2 billion next year, Reuters reported. That's a conditional estimate, not guidance. For 2027, GM said "the path forward is more challenging," though it still expects results to improve.

Wall Street isn't heading for the exits. None of the analysts tracked by Bloomberg recommend selling the stock. "It's a buying opportunity. Most of what spooked the market is timing rather than earnings power," StoneX analyst Mickey Legg said, according to Bloomberg. BNP Paribas' James Picariello cited GM's "severely discounted valuation." Several analysts did trim their price targets, Benzinga reported: Morgan Stanley to $95 from $101, Barclays to $105 from $110 and UBS to $109 from $112. TD Cowen kept its $132 target.

GM wasn't the only auto name with a cost story this week. Supplier Autoliv ($ALV) reported third-quarter adjusted earnings of $2.19 a share on Friday, missing the $2.26 consensus, Investing.com reported. Its CEO, Mikael Bratt, said "Cost headwinds have increased materially, mainly related to raw materials, logistics, the recent flooding in Thailand and lower call-off accuracy since Q1."

Tags: earnings · guidance · ev-autos · buybacks-dividends · analysts · markets-moves