Goodyear stock opened 25% up today: explore why

Activist Elliott Management reveals a sizable stake in Goodyear Tire.

Jim Cramer reacts to the news on CNBC’s “Squawk on the Street”.

Goodyear stock is now up nearly 40% versus the start of the year.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Goodyear Tire & Rubber Co (NASDAQ: GT) opened about 25% up this morning after Elliott Management revealed a sizable stake in the tire manufacturing company.

On Thursday, the activist investor said it had a 10% economic interest in Goodyear and pushed for a right to name five new independent directors to its board.

Over the past decade, owning Goodyear stock has been a disappointment. The Poor stock performance is a result of margin erosion, suboptimal go-to-market strategy and unfocused brand strategy.

In its letter to the board, Elliott recommended that the Nasdaq-listed firm starts an operational review to improve margins and explore ways to monetise the company-owned stores.

Goodyear stock is now up close to 40% versus the start of the year.  

Elliott sees the Akron-headquartered firm trading at more than $21 a share if the management executes on its proposal.

The stock market news arrives only days after Goodyear Tire & Rubber Co reported revenue for its first financial quarter that came in slightly below the Street estimates. Reacting to today’s development, famed investor Jim Cramer said on “Squawk on the Street”:

I don’t believe this will initially lead to anything other than a conversation with the board about what Goodyear could do better. But I’m concerned it’s underperformed and I think Elliott [has something worthwhile to say here].

Wall Street currently has a consensus “overweight” rating on the Goodyear stock.


Copy expert traders easily with eToro. Invest in stocks like Tesla & Apple. Instantly trade ETFs like FTSE 100 & S&P 500. Sign-up in minutes.


81% of retail CFD accounts lose money

Get demo account


Funds & Trusts


North America

Stock Market