DETROIT (AP) — Shares of General Motors reached an important milestone on Friday, closing above their initial public offering price of $33 for the first time in more than two years.
GM shares reached $33.77 Friday before slipping back to close at $33.42, up 3.2 percent. The auto giant sold shares to the public for $33 in a November 2010 IPO, but they've traded below that price since May 4, 2011.
GM's business is getting stronger. Two weeks ago, GM reported solid first-quarter earnings on robust sales in North America. On Friday, there were signs sales declines may have bottomed in Europe — where GM has lost money for more than a dozen years.
Shares of all automakers traded in the U.S. show double-digit gains this year. GM and Ford are benefiting from strong sales in the U.S. as well as China. And investors believe the Japanese government's economic policies create an advantage for exporters such as Toyota and Honda.
Investors' overall enthusiasm for stocks has also helped automakers' shares. And as stock markets set records, investors use some of their gains for a down payment on a car or truck.