GE stock price forms giant megaphone pattern ahead of earnings

GE Aerospace’s stock price is under pressure in 2025 as last year’s rally takes a breather and as investors assess the impact of Donald Trump’s tariffs on all countries. The stock was trading at $181.80 on Thursday, down by 15% from its highest point this year. This article provides a GE forecast ahead of its earnings.

GE Aerospace business is thriving

GE Aerospace is one of the biggest industrial companies in the United States, with a market cap of over $193 billion.

It is what remained after General Electric spun out is other energy and health businesses. Its main focus is on commercial and defense aircraft engines. Its top engines are the likes of LEAP, GE90, GEnx, and CFM56. 

The company’s business has done well in the past few years as its restructuring has left behind a lean and more profitable organization.

At the same time, GE Aerospace has benefited from the robust order book in the past few years. Data shows that Airbus has had net orders of over 5,900 planes since 2018, while Boeing had 2,795 orders. 

GE Aviation’s business performs well when the number of aircraft orders is rising. That’s because its engines are used by all types of aircraft, including Boeing 737, 747, 767, Airbus A320, and Airbus 330.

The most recent results showed that GE Aerospace generated orders of $15.5 billion in the fourth quarter, up by 46% from the same period a year earlier. 

These numbers helped its revenue to grow by 16% to $9.9 billion, while its net profit rose by 37% to $2.3 billion. 

For the year, the company reported over $50.3 billion in orders, up by 32% from a year earlier. Its revenue rose by 9% to $38.7 billion, while its profit margin widened to 19.7%.

Analysts expect GE’s results to show that its revenue stood at $9.05 billion in the first quarter. It will then make $39.4 billion in the full year, followed by $43.56 billion in the next financial year.

Trump tariffs to impact its margins

Donald Trump’s tariffs will have an impact on General Electric’s business from the cost side. Trump has imposed levies on all American imports, including raw materials that GE uses.

Its top raw materials are steel and aluminum, which are now attracting a 25% tariff. Additionally, it utilizes Canadian nickel, which is also subject to tariffs. Therefore, there is a likelihood that the company will see thinner margins.

Additionally, it is a big consumer of rare earths elements that are used to make magnets and other engine parts. China recently announced that it would stop shipping these rare earth metals to the US, which may impact its business.

GE stock price may also be affected if Trump decides to cripple COMAC, the upcoming Chinese company. That’s because the company relies on engines made by GE and CFM, its joint venture with Safran. These odds rose after China barred its airlines from buying Boeing aircraft. 

GE stock price analysis

GE share price chart | Source: TradingView

The daily chart indicates that the GE share price has rebounded over the past few weeks as trade tensions have eased. It has remained above the 200-day moving average, a sign that bulls are in control.

Most importantly, GE Aviation stock has formed a giant megaphone pattern, comprising two ascending and diverging trendlines. This pattern often leads to a strong bullish breakout over time.

If this happens, the next key level to watch will be the year-to-date high of $213.95, up by 18% from the current level. A move below the lower side of the megaphone will point to more gains.

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