Feeling Vindicated: Blackstone’s Recent Underperformance
Our Recent Call to Downgrade Blackstone
Our recent call to downgrade Blackstone from “Strong Buy” to “Sell” has been vindicated by the stock’s recent underperformance. Since our previous article was published on 23 November 2024, Blackstone’s share price has fallen by around -19.7%. The S&P 500 Index gained 2.4% over the same period. Apart from the struggling real estate segment, Blackstone’s overall performance is strong with 21% fee-related earnings growth and 8% AUM growth in FY2024.
Why We Made the Call
When we initially recommended a “Strong Buy” rating on Blackstone, we believed the company had the potential for significant growth and outperformance. However, as the stock price continued to decline and underperform compared to the market, we reassessed our position. The struggling real estate segment was a major factor in our decision to downgrade Blackstone, as it was weighing heavily on the overall performance of the company.
Despite the challenges in the real estate sector, Blackstone has shown strong performance in other areas, with impressive fee-related earnings growth and AUM growth in FY2024. However, the overall underperformance of the stock led us to change our rating to “Sell” in order to protect investors from further losses.
How This Will Affect You
If you are an investor in Blackstone or considering investing in the company, the recent downgrade to “Sell” may have an impact on your portfolio. It is important to carefully assess the risks and potential returns associated with investing in Blackstone, especially in light of its recent underperformance. This decision was made to protect investors from further losses and to ensure that our recommendations align with the current market conditions.
How This Will Affect the World
Blackstone is a major player in the financial industry, and its performance can have ripple effects across the global economy. The recent underperformance of Blackstone’s stock may impact investor confidence in the company and could lead to shifts in investment strategies and market trends. It is essential to monitor the situation closely and consider the broader implications of Blackstone’s performance on the world economy.
Conclusion
In conclusion, the recent underperformance of Blackstone’s stock has validated our decision to downgrade the company from “Strong Buy” to “Sell.” While Blackstone has shown strong performance in certain areas, the struggling real estate segment and overall stock performance led us to reassess our recommendation. It is important for investors to carefully consider the risks and potential returns associated with investing in Blackstone, especially in light of its recent underperformance. Monitoring the situation closely and staying informed will be key in navigating the ever-changing market conditions.
