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Goldman Sachs Acquiring GM Credit Card Business for $2.5 Billion

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Goldman Sachs, a massive banking figure with a market capitalization of $68.32 billion, is buying GM's credit card business for $2.5 billion. The corporation beat Barclays for the deal. Nonetheless, the acquisition has yet to prove fruitful for Goldman Sachs stock, a company with a lot of news happening at once.

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Goldman Sachs is buying GM Rewards Credit Cards for $2.5 billion

GM Rewards Credit Cards offer three different rewards-based cards that offer cash back on various purchases (like GM parts, accessories, and vehicle service—but also restaurants, gas stations, and office supply stores). Some GM drivers can make credit card purchases right from their digital display. 

 Reportedly, GM cardholders contribute $8.5 billion in annual spending.

Capital One Financial Group issues GM cards and has approved all aspects of the purchase deal, meaning Goldman Sachs' acquisition of the GM credit card business could finalize within weeks.

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This isn't the company's first foray into credit cards. In 2019, they collaborated on a credit card with Apple. More cards may be on the horizon for Goldman Sachs.

What to know about the Goldman Sachs layoffs:

As evidenced by rising unemployment rates, American businesses are still laying off workers in swells—and Goldman Sachs is a part of the picture. The same day the GM credit card business acquisition news broke, the bank announced they were cutting about 400 jobs (or under one percent of their workforce).

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This is important not just because of job loss, but because Goldman Sachs promised to freeze layoffs during the COVID-19 pandemic, which has yet to end. The company also saw record equity trading revenue in Q2 2020 (bringing in about $3.6 billion more than originally estimated for the quarter). 

Who is Stephanie Cohen of Goldman Sachs?

In more Goldman Sachs news, Stephanie Cohen has been appointed to lead the company's consumer banking and wealth management division. She may also succeed CEO David Soloman as chief executive after Solomon moved around executive positions earlier in the week.

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For Goldman Sachs, change is moving quickly.

What is Goldman Sachs stock price today?

Goldman Sachs stock (which trades under the ticker symbol "GS" on the NYSE) has been mildly volatile during the month of September. On Friday, the company took a half percent dip, opening the market at $195.35 per share.

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This price is down from Wednesday afternoon, when shares were trading at $202.70 a pop.

Even with all this news and a new acquisition worth billions on the horizon, Goldman Sachs stock has yet to reach its pre-coronavirus levels.

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A forecast for Goldman Sachs stock

Goldman Sachs stock hasn't boomed with its news, which may make this stock a buy. Holding it could potentially mean growth in the future—but I wouldn't expect that growth to be giant. Despite the company's valuation estimated to be in the trillions, the stock hasn't shown any exciting leaps in quite some time. 

At the end of the day, Goldman Sachs stock could be a portfolio stabilizer in an uncertain time.

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