Why Goodyear Tire & Rubber Company (GT) Went Down On Monday?

Insider Monkey
08 Apr

We recently published a list of Chinese Stocks Dominate Monday’s 10 Worst Performers. In this article, we are going to take a look at where The Goodyear Tire & Rubber Company (NASDAQ:GT) stands against other Chinese stocks that performed worst on Monday.

Wall Street’s main indices finished mixed on Monday as investors remained cautious amid the escalating trade tensions globally, with President Donald Trump threatening to slap China anew with a 50-percent tariff if the latter does not withdraw its countermeasure.

The tech-heavy Nasdaq was the sole gainer during the day, up 0.10 percent. In contrast, the Dow Jones declined by 0.91 percent and the S&P 500 dropped by 0.23 percent.

Meanwhile, 10 companies—predominantly Chinese stocks—were sold down as investors moved away to minimize the potential risks from the trade war.

In this article, we have identified Monday’s worst performers and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.

A tire manufacturing plant, showing the mechanization and efficiency of the company's operations.

The Goodyear Tire & Rubber Company (NASDAQ:GT)

The Goodyear Tire & Rubber Company dropped for a second day on Monday, losing 9.07 percent to end at $8.82 apiece as investors parked funds while waiting for further updates on the escalating trade tensions globally coupled with a pessimistic comment from a former hedge fund.

In the Thursday episode of the Mad Money show, host and former hedge fund manager Jim Cramer advised a caller about what he thinks about GT’s stock.

“Value trap, my friend, value trap. So many people have tried to make this thing work in my career so many times and every time that’s happened, it just doesn’t pay off,” he said. “They did the restructuring, and the stock has been knocked down like every industrial company has.”

Last week, GT earned an upgrade in its stock rating from Deutsche Bank to “buy” from “hold” previously, citing improved execution on asset sales and cost savings under the company’s Goodyear Forward restructuring plan.

“The rubber has met the road,” said Deutsche Bank analysts, highlighting progress in divestitures and operational efficiencies.

Overall, GT ranks 3rd on our list of Chinese stocks that performed worst on Monday. While we acknowledge the potential of GT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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