CA - Why Blackstone Stock Is Still A Sell After Q4 Results
2024-01-28 16:00:26 ET
Summary
- Blackstone has been a phenomenal long-term investment and has grown into the world's largest alternative asset manager with over $1 trillion in AUM.
- We review its Q4 results and explain why the results were not as good as they appeared on the surface.
- We also look at two big emerging risks for the company that make us bearish on the stock.
Blackstone ( BX ) is the world's largest alternative asset manager with over $1 trillion in assets under management. It benefits from this immense size through several key competitive advantages that have enabled it to deliver phenomenal long-term total returns for shareholders:
- Name brand: clients are more willing to invest with an alternative asset manager with the name recognition, track record, product variety, and prestige of BX.
- Business network: BX is able to access unique and oftentimes exclusive deals and get bargains that it wouldn't otherwise be able to command if it were not for its global presence and extensive history, during which it has built up a large number of business relationships.
- Proprietary data: Through its huge scale, global presence, and diversified portfolio of alternative investment products, BX has a treasure trove of proprietary macroeconomic and industry-specific data that it can leverage to enhance its investment decision-making and business operating processes.
- Massive scale: Given that its size is unmatched in the alternative asset space, it can often invest in deals that most of its competitors cannot even bid on, thereby getting better deals than it would otherwise.