Goodyear Tire & Rubber (GT) Stock Analysis: Reddit Discussion & Financial Performance Assessment

On December 8, 2025, a Reddit discussion [1] sparked debate about Goodyear Tire & Rubber (GT), presenting three key perspectives: bearish (negative financial trends, failed activist efforts), bullish (legacy brand turnaround potential), and neutral (EV tire demand potential but execution skepticism).

Internal and external data corroborate the bearish claims:

• Q3 2025 net sales were $4.645B (-3.7% YoY); YTD 2025 sales were $13.363B (-4.07% YoY) [3].
• Net loss of $2.2B in Q3 2025 and $1.8B YTD, with a net profit margin of -9.57% [0][3].
• Normalized ROIC of 3.45% (low for the industry) [1], and long-term debt increased to $7.26B (Sept 2025) from $6.4B (end-2024) [3].

Elliott Management settled with Goodyear in 2023, launching the “Goodyear Forward” restructuring (completed $2.2B divestitures) [2]. However, financial challenges persist, indicating the plan did not resolve deep-rooted issues [3].

• Short-term: GT closed at $8.54 on Dec 8 (down 0.47%) with 7.08M shares traded (below 8.22M average) [0], showing the Reddit discussion had minimal immediate price impact.
• Medium-term: Analyst consensus remains “Hold” ($7.30-$10.00 target range) [0], reflecting ongoing market skepticism.

1. Legacy Brand vs. Financial Performance Misalignment
   : Goodyear’s 125-year legacy brand [3] does not translate to financial value, evidenced by a P/B ratio of 0.82x (market values below book value) [0].

2. EV Tire Potential With Execution Uncertainty
   : While EV tire demand exists (due to heavier vehicles and faster wear), Goodyear’s Q3 earnings do not highlight EV tires as a significant growth driver [3], supporting execution skepticism.

3. Activist Efforts Failed to Address Core Issues
   : The 2023 Elliott Management restructuring divested assets but did not reduce long-term debt or reverse revenue declines [2][3], indicating structural challenges beyond asset sales.

• Negative Profitability
  : YTD net loss of $6.35/share [3] raises concerns about long-term viability without profitability improvements.
• High Debt Load
  : $7.26B in long-term debt with rising interest expenses [3] increases financial leverage risk.
• Declining Revenue
  : Consistent YoY revenue declines signal market share erosion, likely due to Chinese competition (as noted in the Reddit post) [1].

• Legacy Brand Turnaround
  : Goodyear’s unquantified goodwill could support a strategic turnaround if management addresses operational inefficiencies.
• Buyout Speculation
  : The Reddit post suggests a potential buyout at $18/share (above current price), though no concrete evidence exists [1].
• EV Tire Market Growth
  : Successful execution in the EV tire segment could drive future revenue growth.

GT’s current financial performance is weak (negative growth, net losses, high debt) [0][3], with minimal short-term price impact from the Reddit discussion [0]. Analyst consensus is “Hold” [0], while the post’s speculative buy grade is unsupported by consensus estimates. Decision-makers require additional data on:

• GT’s EV tire market share and growth trajectory.
• The direct impact of Chinese competition on pricing and market share.
• Management’s plan to improve profitability beyond existing restructuring efforts.

No prescriptive investment recommendations are provided, and all conclusions are based on cited data and market context.