Why Is Alternative Investment Giant Blackstone Stock Falling Premarket Thursday?
Portfolio Pulse from Lekha Gupta
Blackstone Inc (NYSE:BX) shares fell in premarket trading after reporting Q1 FY24 results. Despite beating adjusted revenue expectations with $2.55 billion and distributable earnings per share of $0.98, net accrued performance revenue declined. Assets under management grew 7% Y/Y to $1.06 trillion. The company declared a quarterly dividend of $0.83 per share and repurchased 0.7 million shares. Blackstone also announced the acquisition of Apartment Income REIT Corp. (NYSE:AIRC) for about $10 billion. Exposure to Blackstone stock is available through EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF (BATS:LBO).
April 18, 2024 | 12:51 pm
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POSITIVE IMPACT
Apartment Income REIT Corp. is being acquired by Blackstone in an all-cash transaction valued at about $10 billion, including debt assumption.
The acquisition of AIRC by Blackstone is a significant move, likely to be viewed positively by AIRC shareholders due to the all-cash nature of the transaction. This could lead to a short-term positive impact on AIRC's stock price as the market reacts to the acquisition news.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
NEUTRAL IMPACT
Investors can gain exposure to Blackstone through the EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF.
While the LBO ETF offers exposure to Blackstone, the direct impact of Blackstone's earnings and acquisition news on the ETF's performance is less clear. The ETF's performance will depend on its broader portfolio and market conditions, making the short-term impact neutral.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Blackstone reported strong Q1 FY24 results with higher than expected revenues and earnings per share, but saw a premarket stock price decline.
The premarket decline in Blackstone's stock price, despite strong earnings, could be due to the market's reaction to the slight decline in net accrued performance revenue or other external market conditions. The acquisition of AIRC and the dividend announcement are positive, but the short-term market reaction is negative.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100