Core Viewpoint - BlackRock's ETF chief believes that cryptocurrency deregulation under President-elect Donald Trump will significantly boost Bitcoin's performance, potentially leading to another historic year for the cryptocurrency [1]. Group 1: Bitcoin Performance and Market Trends - The iShares Bitcoin Trust (IBIT), managed by BlackRock, has seen a remarkable increase of 114% since its launch in January 2024 and is up nearly 8% year to date, coinciding with Bitcoin trading briefly above $100,000 [2]. - Despite the strong performance, BlackRock's ETF chief cautions that Bitcoin is a risky asset, and investors should be prepared for volatility, as a 15% movement is not considered significant in the context of Bitcoin [3]. Group 2: Regulatory Developments and Industry Initiatives - Progress is expected on the Financial Innovation and Technology for the 21st Century Act (FIT21), particularly regarding stable coins and definitions in taxonomy, which could further influence the cryptocurrency market [2]. - Calamos Investments is also entering the cryptocurrency space with plans to launch the world's first 100% downside protected Bitcoin ETF, set to debut shortly after Trump's inauguration [4].

Group 1 - Keefe, Bruyette & Woods analyst Aidan Hall raised the price forecast on BlackRock, Inc. to $1,180 from $1,160 while maintaining an Outperform rating [1] - BlackRock reported fourth-quarter results with revenue of $5.68 billion, exceeding the consensus of $5.53 billion, and adjusted EPS of $11.93, surpassing the consensus of $11.21 [1] - BLK shares responded positively to the results, outperforming peers and the broader market by more than 300 basis points [1] Group 2 - BlackRock is in the early phases of its transformation, with management optimistic about growth initiatives for 2025 [2] - Management highlighted ongoing initiatives to meet the growing demand for alternative investments in the retail channel, including a managed model partnership with Partners Group [2] Group 3 - Management expects core G&A growth in the mid-to-high single digits for 2025, with anticipated G&A expenses of $152.5 million from GIP and Preqin [3] - Core G&A is expected to grow 7.9% in 2025, excluding HPS [3] Group 4 - Management anticipates continued operating margin expansion, projecting an estimated 80bps margin improvement to 45.3% in 2025 [4] - Analyst adjusted EPS estimates slightly for FY25, 2025, and 2026 [4] Group 5 - Revisions reflect higher operating expenses, primarily from compensation and benefits, and amortization of intangibles, partially offset by higher total revenue [5] - Investors can gain exposure to BlackRock stock via Fidelity Disruptive Finance ETF and Spinnaker ETF Series Genter Capital International Dividend ETF [5]

Core Viewpoint - BlackRock, managing over $11.5 trillion in assets, is the world's largest investment company, with $3.5 trillion in ETFs through its iShares subsidiary, which offers over 1,400 ETFs, including the iShares Expanded Tech Sector ETF that has outperformed the S&P 500 since its inception [1][2][10]. Group 1: iShares Expanded Tech Sector ETF Performance - The iShares Expanded Tech Sector ETF, established in 2001, has delivered better annual returns than the S&P 500, with a compound annual return of 11% since inception [2][10]. - Over the last 10 years, the ETF's compound annual return accelerated to 20.2%, significantly outpacing the S&P 500's 13.7% annualized gains [11]. - The ETF's top 10 positions account for 55.2% of its total value, with Nvidia, Meta Platforms, and Apple being among the largest holdings [4][3]. Group 2: Key Holdings and Their Performance - The top 10 stocks in the ETF generated an average return of 65.5% in 2024, outperforming the S&P 500's 23% gain [4]. - Notable stock performances include Nvidia with a 171.2% price change, Broadcom at 107.7%, and Netflix at 83.07% [5]. - The ETF also holds other popular AI stocks like Advanced Micro Devices and Palantir Technologies, which contribute to its growth potential [9]. Group 3: Future Outlook - Nvidia is expected to perform well in 2025 due to increased demand for its new Blackwell GPUs, which are crucial for AI model development [6]. - Meta is anticipated to have a strong year with the release of its advanced Llama 4 large language model and new AI features across its platforms [7]. - Microsoft and Alphabet are expected to enhance their AI models and continue strong growth in their cloud computing segments, which could positively impact their stock prices [8]. Group 4: Economic Impact of AI - Analysts estimate that AI will add $15.7 trillion to the global economy by 2030, with significant contributions from companies within the ETF [13]. - Tech giants are projected to spend $1 trillion upgrading data centers over the next four years to support AI demand, benefiting companies in the ETF like Broadcom and AMD [12].

Core Insights - BlackRock (BLK) shares increased by 4% following the release of better-than-expected quarterly results, driven by record assets under management (AUM) [1][4] - The firm reported fourth-quarter adjusted earnings per share (EPS) of $11.93, marking a 23% year-over-year increase, with revenue also rising 23% to $5.68 billion, surpassing analyst consensus estimates [1][4] Group 1: Financial Performance - AUM surged 15% year-over-year to $11.55 trillion, with total net inflows nearly tripling to $281.4 billion [2][4] - Long-term net inflows contributed $200.7 billion, with $142.6 billion specifically allocated to exchange-traded funds (ETFs) [2] Group 2: Growth and Future Outlook - CEO Larry Fink highlighted that this marks the second consecutive quarter of record inflows for BlackRock, with client activity significantly increasing [3][4] - The company experienced 7% organic base fee growth and 12% growth in technology services annual contract value (ACV) [3] - Fink expressed optimism about entering 2025 with substantial growth and upside potential, indicating that this is just the beginning [3]

Financial Data and Key Metrics - BlackRock achieved record net inflows of $641 billion in 2024, with $281 billion in Q4 alone, driven by strong client activity and market conditions [7][17] - Full-year revenue grew 14% YoY to $20.4 billion, with operating income up 23% to $8.1 billion and EPS increasing 15% to $43.61 [18] - Q4 revenue rose 23% YoY to $5.7 billion, with operating income up 36% to $2.3 billion and EPS increasing 23% to $11.93 [19] - AUM reached a new high of nearly $11.6 trillion, with a 7% annualized organic base fee growth in Q4, the highest in three years [10] Business Line Performance - ETFs saw record net inflows of $390 billion in 2024, with $143 billion in Q4, driven by seasonal portfolio reallocations and strong demand for digital asset ETPs [34] - Institutional platform generated $74 billion in net inflows, led by $64 billion in active strategies, while retail net inflows were $24 billion, driven by Aperio and active fixed-income funds [35][36] - Private markets saw $9 billion in net inflows, with infrastructure and private credit leading the way, and $13 billion in realizations from private equity, private credit, and infrastructure strategies [36] Market Performance - US clients contributed $385 billion in net inflows, while European ETF platform grew to nearly $1 trillion in assets, driven by individual investors and digital-first offerings [33][73] - Cash management platform saw $81 billion in net inflows in Q4 and $153 billion for the full year, with AUM up 20% YoY [38] Strategic Direction and Industry Competition - BlackRock is integrating GIP, HPS, and Preqin to enhance its private markets and technology offerings, expected to contribute over 20% of total revenue [15][16] - The company is focusing on structural growth areas like ETFs, Aladdin, outsourcing, and fixed income, aiming for 5% organic growth through market cycles [11][12] - BlackRock is positioning itself as a leader in blending public and private markets, with a focus on private credit, infrastructure, and technology-driven solutions [63][64] Management Commentary on Operating Environment and Future Outlook - Management highlighted the importance of AI, low-carbon transition, and evolving debt financing as mega forces shaping the future of capital markets [60] - The company expects 2025 to be a dynamic investing environment, with opportunities in fixed income, private credit, and infrastructure [98][99] - BlackRock is optimistic about market opportunities and believes it is well-positioned to capitalize on structural growth trends [85] Other Key Information - BlackRock returned $4.7 billion to shareholders through dividends and share repurchases in 2024, with plans to repurchase $1.5 billion in shares in 2025 [30][33] - The company expects to close the acquisitions of Preqin and HPS in Q1 and mid-2025, respectively, adding approximately 2,300 new employees [28][29] Q&A Summary Question: Outlook for Money Motion and Asset Class Beneficiaries in 2025 - BlackRock expects continued momentum in ETFs, private markets, fixed income, and cash, with GIP contributing to organic growth [89][90] - The company sees opportunities in short-duration active fixed-income strategies and private credit, especially in a supportive market environment [94][95] Question: Prospects for Alts in the US Retirement Channel - BlackRock is exploring ways to integrate private markets into target date funds and managed accounts, pending regulatory reforms [106][109] - The acquisition of Preqin is expected to enhance data and analytics, potentially enabling broader adoption of alternatives in retirement accounts [113][114] Question: Client Conversations Post-HPS Acquisition - Client feedback on the HPS acquisition has been positive, with insurance and private wealth channels identified as key growth areas [120][121] - BlackRock sees significant potential to expand private credit offerings globally, leveraging its relationships and technology platforms [122][124] Question: Expense Guidance and Margin Outlook for 2025 - Core G&A expense is expected to grow mid-to-high single digits, excluding HPS, with margin expansion driven by market movements and disciplined budgeting [133][135] Question: Fixed-Income Flows and Investor Allocations - Investors are underallocated to fixed income, with potential for increased allocations to intermediate and longer-duration bonds as rates stabilize [142][143] - BlackRock saw $164 billion in fixed-income flows in 2024, driven by demand across ETFs, index, and active strategies [144] Question: Retail Market for Alternatives and 401(k) Adoption - BlackRock is innovating with managed models and evergreen funds to simplify access to private markets for retail investors [159][161] - The company is working on integrating semi-liquid products and private markets into its $300 billion managed models and SMA franchise [164] Question: Capital Allocation and Share Repurchases - BlackRock prioritizes investing in the business for organic growth, followed by dividends and share repurchases, with $4.7 billion returned to shareholders in 2024 [174][176]

BlackRock’s (BLK) fourth-quarter 2024 adjusted earnings of $11.93 per share surpassed the Zacks Consensus Estimate of $11.44. The figure reflects a rise of 23.5% from the year-ago quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Shares of BLK are trending almost 2.8% higher in the pre-market trading session today on the back of solid improvement in assets under management (AUM) balance, which drove the quarterly performance.The results benefited from a rise in revenues. AUM w ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

BlackRock reported strong fourth-quarter earnings with net income jumping 29% year over year.Investment management giant BlackRock (BLK 3.10%) reported fourth-quarter and full-year earnings on Wednesday, Jan. 15, that topped analysts' consensus estimates on both top and bottom lines. BlackRock's adjusted earnings per share (EPS) for the quarter hit $11.93, rising 23.5% year over year. Total revenue for the quarter came in at $5.68 billion, surpassing the expected $5.57 billion. With impressive growth in ass ...

For the quarter ended December 2024, BlackRock Finance (BLK) reported revenue of $5.68 billion, up 22.6% over the same period last year. EPS came in at $11.93, compared to $9.66 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $5.56 billion, representing a surprise of +2.16%. The company delivered an EPS surprise of +5.86%, with the consensus EPS estimate being $11.27.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- a ...

BlackRock Finance (BLK) came out with quarterly earnings of $11.93 per share, beating the Zacks Consensus Estimate of $11.27 per share. This compares to earnings of $9.66 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.86%. A quarter ago, it was expected that this investment firm would post earnings of $10.42 per share when it actually produced earnings of $11.46, delivering a surprise of 9.98%.Over the last four quarters, t ...