Is Blackstone a Buy After Its Latest Earnings Report?
2026-10-23 17:35
•Matt Dilallo •The Motley Fool
•••••••• • Axe Cap view
Blackstone: Oversold Opportunity or Value Trap?
Blackstone’s mixed Q3 highlights risks and rewards for long-term investors eyeing discounted shares.
Blackstone’s recent earnings left investors scratching heads. Assets under management grew a solid 10% to $1.4 trillion, attracting $63 billion in fresh capital, which shows investors still believe in their model. But distributable earnings took a hit, sliding 9%, dragged down by a sharp drop in net realizations. This volatility reflects the tricky private equity and real estate environments lately. Trading below 20 times earnings with a juicy 4.4% dividend yield, Blackstone offers a tempting long-term bet, especially given its push into AI infrastructure and private credit, sectors set to grow. The catch? If market conditions worsen or fundraising slows, earnings could stay under pressure. For South African investors, the link isn’t direct, but the USD/ZAR rate might react to shifts in global risk appetite tied to funds flowing through major asset managers like Blackstone. Approach with a watchful eye—. this is just our opinion and not financial advice
Watch Blackstone closely. Wait for clearer Q4 recovery signs before adding exposure. Hedge parts of any position with USD/ZAR protection given global uncertainties.
- BX
- USD/ZAR
- Continued earnings volatility if realizations remain weak
- Global funding environment tightening reducing capital inflows
5/10
Blackstone reported mixed Q3 2026 results with strong AUM growth to $1.4 trillion and $63.3 billion in capital inflows, but distributable earnings fell 9% due to a 34% decline in net realizations. Despite near-term earnings volatility, management expects a significant recovery in Q4 and an outstanding 2027. At $117 per share (down 28.5% from 52-week high), the stock trades at less than 20x earnings and offers potential 15% annualized returns over five years with a 4.4% dividend yield, making it attractive for long-term investors.
Our take is based on reporting first published by The Motley Fool.