I believe the new CEO
John Flannery with pursue with the GE
digital initiated by Jeff Immelt. GE
is an old and traditional Engineering manufacturer but not driving crazy in the internet era where companies like Google
, Amazon, etc are taking the most advantage of Internet. In theory, GE
wants to become digital because of the larger profit margin and lower cost.
A typical profit margin for most businesses at GE
is 30%, while being digital makes your profit bigger of up to 70% without any headache dealing with Manufacturing, custom, procurement, labor, energy, etc.
This is how I see GE
stock for the next 10 years.