BLK – Daily Chart
The price of BLK shares hit highs of $1,080 in December but have slumped to $963 per share. Support comes in at $919 and $886.
Rising stock prices are normally good for BlackRock, which is the world’s largest money manager. The past quarter should offer more of the same with all-time stock market highs and a busy retail trading environment.
Analysts followed by FactSet expect Larry Fink’s firm to report a record of $11.65 trillion of assets under management when it reports fourth-quarter earnings on Wednesday.
BlackRock’s assets have grown astronomically from the last financial crisis and it is unsure how the company would fare in a market panic. The company recently laid out three situations that could see them reduce risk.
“We think US equity gains could roll on. Yet an economic transformation and global policy shifts could push markets and economies into a new scenario,” strategists wrote. “We look through near-term noise but outline triggers for adjusting our views, by either dialing down risk or shifting our preferences,” management said.
Investors are more aware of market risk as equities continue their rocky start to the year, with the S&P 500 down 1% from the start of January. Some Wall Street forecasters are also calling for a drawdown of 16% or more in US equity prices.
The company noted that there is risk from Trump’s new policies. Investor sentiment and any market fragilities.
“While earnings might surprise to the upside, any misses could renew investor concern over whether big AI capital spending will pay off and if high valuations are justified — even if we think valuations can’t be viewed through a historic lens as an economic transformation unfolds,” strategists said.
Continued signs of “elevated vulnerabilities” in financial markets are another trigger that could push BlackRock away from its risk trade, strategists added.