what happened
A quirky and unexpected alliance between two prominent companies has powered the stock of one of them. general motors (GM 5.60%) It rose nearly 6% on Thursday. Incumbent automakers also benefited from lingering positive investor sentiment in their latest earnings announcement.
So what
General Motors’ atypical partner is video streaming giant netflix (NFLX 1.35%)On Thursday morning, the companies announced in a joint press release that they are working together to increase the presence of electric vehicles (EVs) in Netflix movies and TV shows.
This is part of General Motors’ “Everybody In” marketing campaign, which aims to strengthen the automaker’s commitment to EVs. Just over two years before him, the company pledged to completely eliminate fossil fuel-powered internal combustion engines from its models by 2035.
In a press release about the new initiative, General Motors Chief Marketing Officer Deborah Wall is quoted as saying: Storytelling that incorporates the experience of driving and owning an EV. ”
No details were provided as to the financial details of the transaction.
So
Netflix is a platform with a huge user base, so it’s perfect for a focused marketing push.
The announcement comes at a time of broad optimism for General Motors. On Tuesday, the company released his fourth-quarter 2022 results, hitting a convincing beat in both sales and earnings. The day before, the company announced its latest quarterly dividend. The company resumed payments last summer after being suspended during the coronavirus pandemic.
Eric Volkman has no positions in any of the mentioned stocks. The Motley Fool holds positions with and recommends Netflix. The Motley Fool’s U.S. headquarters has a disclosure policy.
