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BlackRock Stock Rises as CEO Touts Record Inflows

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The company has enjoyed two consecutive quarters of record net capital inflows


BlackRock (NYSE:BLK) stock rose 3.5% and approached $1,000 early Wednesday morning after the financial giant topped Wall Street’s Q4 2024 adjusted earnings forecast.

The world’s largest asset manager generated $5.677 billion in revenue during 2024’s fourth quarter, beating analysts’ consensus estimate of $5.57 billion. Furthermore, the company reported net income of $1.67 billion, up 21% year over year.

CEO Larry Fink publicly lauded Blackrock’s performance, hailing “two consecutive record flows quarters” after the firm enjoyed $641 billion of net capital inflows in Q3 2024.

Fink also touted BlackRock’s “industry-leading margin” of 44.5% in 2024, which increased 280 basis points versus 2023. He also went onto assure investors that BlackRock “enters 2025 with more growth and upside potential than ever”.

“This is just the beginning,” he added.

Analysis: Positive results amid M&A activity

Fink’s optimism might sound overdone, but the aforementioned data supports the bullish argument for BlackRock stock. If client capital inflows are the lifeblood of a financial institution like BlackRock, then 2025 might indeed be a strong year for the company.

In October, BlackRock finalized its $12.5 billion acquisition of Global Infrastructure Partners. The company also bought out private-credit shop HPS for $12 billion and is in the process of closing a deal to acquire data firm Preqin Ltd. for the equivalent of $3.1 billion.

“For many companies, periods of M&A [mergers and acquisitions] contribute to a pause in client engagement”, Fink acknowledged.

Yet, in light of BlackRock’s fourth-quarter and full-year 2024 top-line and bottom-line growth, Fink argued that BlackRock’s “clients are instead embracing and rewarding” the firm’s M&A strategy.

One might question whether BlackRock’s clients usually pay much attention to the company’s M&A “strategy”; generally, they just want to park their money in a safe place where they can get a decent yield.

Still, the data is largely positive, and overall, it seems to back up Fink’s confident vision for what may prove to be another year of impressive results for BlackRock.

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David Moadel
Financial Writer

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