BlackRock Stock Rises After Firm Reports Record Inflows And AUM: Retail’s Exuberant

The world’s largest asset manager, BlackRock Inc (BLK), on Friday reported a record $221 billion of net inflows during the third quarter that took its assets under management (AUM) to new highs.

BlackRock said its AUM rose by $2.4 trillion year-over-year (YoY) to $11.5 trillion driven by significant net inflows and positive market movements. The firm’s year-to-date inflows of $360 billion has already surpassed full-year net inflows seen in 2022 and 2023.

Chairman and CEO Larry Fink said the firm’s strategy is ambitious and “is working.” “The opportunities ahead of us have never been greater,” he said.

During the quarter, the firm’s revenue increased 15% YoY to $5.197 billion while operating income rose 23% YoY to $2 billion. Meanwhile, net income grew 2% YoY to $1.63 billion.

BlackRock said its investment advisory and administration fees and securities lending revenue increased $349 million YoY to $4.03 billion. This was primarily driven by positive organic base fee growth and the impact of market beta on average AUM.

During the quarter, the asset manager completed $375 million of share repurchases. BlackRock also closed the acquisition of Global Infrastructure Partners (GIP) on Oct. 01, adding $116 billion of client AUM and $70 billion of fee-paying AUM.

“We’re already seeing the power of BlackRock and GIP together as we drive access to the enormous investment potential of infrastructure, especially to support AI innovation,” Fink said. “We believe the model portfolio solution we are building will democratize retail access to private markets. And our planned acquisition of Preqin will enhance data and risk analytics needed to support growing private markets allocations.”

Following the announcement, shares of BlackRock rose over 3% on Friday. Retail sentiment on Stocktwits flipped into the ‘extremely bullish’ territory (96/100) from ‘neutral’ a day ago.

Some Stocktwits users believe the stock is likely to hit the $1,000 mark soon.

Also See: Wells Fargo Reports Decline In Q3 Earnings, Interest Income But Sees Provisions Slide: Retail Sentiment Brightens

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