Insights

Why BlackRock’s Stock Price Fell 18.3% in April

What Happened
April was the cruelest month since the start of the pandemic and BlackRock (NYSE: BLK) felt that pain as its stock price dropped 18.3% in the month, according to S&P Global Market Intelligence. 
The world’s largest money management firm trailed the S&P 500, which was down 8.8% in April — its worst month since March 2020. The Nasdaq was even worse, down 13.3% for the month. Year to date, BlackRock is down 31% as of May 6.
Image source: Getty Images.

So what
BlackRock is the world’s largest money manager with about $9.6 trillion in assets under management (AUM). The AUM dropped from $10 trillion — an all-time high — at the end of 2021 and that can be attributed to the fact that that market was down roughly 5% in the first quarter. However, AUM was up about 6% year over year.
With the sequential drop in assets, revenue was also down from the previous quarter.
But given the difficult market environment, BlackRock beat analysts’ earnings estimates and had a pretty solid quarter, all things considered. Revenue jumped 7% year over year to $4.6 billion while net income climbed 20% to $1.4 billion. Operating margin increased to a robust 37.5%, up from 35.1% a year ago. And in a bad market, BlackRock had $114 billion in long-term net inflows, led by its exchange-traded funds (ETFs), which had $56 billion in inflows in the quarter.

But the stock price dropped after the earnings release on April 13, as the market had an even worse month in April — and May is not much better so far.
Now what
BlackRock, like all money managers, typically doesn’t perform as well when the market is down. Over the past decade-plus, when the stock market has struggled, so has BlackRock. Rising interest rates, which were raised 50 basis points this week, are not typically good either for money managers as rising rates make borrowing more expensive, which in turn slows down growth companies. But BlackRock CEO Larry Fink is optimistic that the firm can navigate the downturn.
“I would say rising rates is an opportunity, not a problem,” he said on the earnings call.
BlackRock will be fine in the long run as the largest money manager and leader in ETFs and will bounce back strong when the market does. When that will happen is not certain right now, but for now, the stock is a hold.
Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. –

What Happened

April was the cruelest month since the start of the pandemic and BlackRock (NYSE: BLK) felt that pain as its stock price dropped 18.3% in the month, according to S&P Global Market Intelligence

The world’s largest money management firm trailed the S&P 500, which was down 8.8% in April — its worst month since March 2020. The Nasdaq was even worse, down 13.3% for the month. Year to date, BlackRock is down 31% as of May 6.

Image source: Getty Images.

So what

BlackRock is the world’s largest money manager with about $9.6 trillion in assets under management (AUM). The AUM dropped from $10 trillion — an all-time high — at the end of 2021 and that can be attributed to the fact that that market was down roughly 5% in the first quarter. However, AUM was up about 6% year over year.

With the sequential drop in assets, revenue was also down from the previous quarter.

But given the difficult market environment, BlackRock beat analysts’ earnings estimates and had a pretty solid quarter, all things considered. Revenue jumped 7% year over year to $4.6 billion while net income climbed 20% to $1.4 billion. Operating margin increased to a robust 37.5%, up from 35.1% a year ago. And in a bad market, BlackRock had $114 billion in long-term net inflows, led by its exchange-traded funds (ETFs), which had $56 billion in inflows in the quarter.

But the stock price dropped after the earnings release on April 13, as the market had an even worse month in April — and May is not much better so far.

Now what

BlackRock, like all money managers, typically doesn’t perform as well when the market is down. Over the past decade-plus, when the stock market has struggled, so has BlackRock. Rising interest rates, which were raised 50 basis points this week, are not typically good either for money managers as rising rates make borrowing more expensive, which in turn slows down growth companies. But BlackRock CEO Larry Fink is optimistic that the firm can navigate the downturn.

“I would say rising rates is an opportunity, not a problem,” he said on the earnings call.

BlackRock will be fine in the long run as the largest money manager and leader in ETFs and will bounce back strong when the market does. When that will happen is not certain right now, but for now, the stock is a hold.

Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!