By Lewis Krauskopf

NEW YORK (Reuters). General Electric Investors who had held the stock over a lengthy, difficult period might hope that this move will help the company’s struggling shares.

Industrial conglomerate ICI, which dates back to 129 years old, announced Tuesday that it will split into three separate businesses that focus on energy, healthcare and aviation.

GE shares jumped up to 7% following the announcement, reaching their highest point since May 2018. After the announcement, GE shares surged as high as 7% and reached their highest level since May 2018. The stock was down about 3% by afternoon trading.

GE was once the largest publicly traded U.S. corporation, but its shares have become less valuable over the last two decades.

This is a close look at GE on the markets.

Refinitiv Datastream estimates that GE’s market worth was $600 billion in 2000.

However, a variety of challenges over the years – including the 2008 Financial Crisis that nearly led to GE Capital’s bankruptcy and the subsequent downturn in oil prices as well as issues within GE’s Power business – have taken a lot out. Monday’s market capitalization of GE was $119 billion.

(Graphic: GE market value since 2000: https://fingfx.thomsonreuters.com/gfx/mkt/lgpdwnnbevo/Pasted%20image%201636477313794.png)

GE stock shares suffered, but its market value was eclipsed in many other companies, especially those from the information technology sector. Microsoft (NASDAQ:) is the biggest U.S. corporation by market value right now, while GE stands around 80th.

(Graphic : GE: Built to last century’s standards?: https://graphics.reuters.com/GE-MARKETCAP/mopanllrkva/chart.png)

Tuesday’s split was made by Larry Culp (CEO), a former outsider who joined GE three years back to restore it.

GE shares continue to stagnate under Culp. Since he was named CEO, the stock had gained about 25% as of Monday, against a 61% rise for the overall and a 37% rise for the S&P 500 industrials sector.

(Graphic: GE shares under CEO Larry Culp: https://fingfx.thomsonreuters.com/gfx/mkt/lbpgnbbxyvq/Pasted%20image%201636477059178.png)

GE received skepticism not only from stockholders, but also other investors. With nearly $68 Billion in outstanding bonds, it is the largest corporate debt issuer. Bondholders have given it a cold shoulder over the past decade.

The company had an “triple-A” rating prior to the financial crisis. However, the debt has been haunted by the long shadows of the episode. As recently as 2018, it’s now-premium bonds were so badly damaged that they could be downgraded to junk status, or below investment grade.

Recent performance has been much better for its bonds, especially after the Federal Reserve made extreme efforts to calm the markets in March 2020 during the COVID-19 pandemic. This triggered a strong rally in risky assets including GE bonds.

(Graphic: GE bonds: From pariah to debt market darling: https://graphics.reuters.com/GE-DEBT/xmvjorrwzpr/chart.png)

It remains to be determined if the split will actually solve the problem for GE shares. GE shares trade at a much higher price, based upon the price-to-earnings ratio. This is in contrast to industrial peers.

(Graphic: GE valuation vs rivals: https://fingfx.thomsonreuters.com/gfx/mkt/egvbkaaggpq/Pasted%20image%201636477444513.png)