Why Blackstone’s Valuation Gap Could Fall
Blackstone (BX) reported an economic income of $520 million for the second quarter of 2016, higher than the previous quarter and 2Q15.
Blackstone (BX) and other major alternative asset managers started going public in 2007.
In the June-ending quarter, Blackstone’s (BX) credit division reported a rise in revenue to $264 million, 9% up from the same quarter last year.
Blackstone’s (BX) hedge fund solutions segment is mainly composed of BAAM (Blackstone Alternative Asset Management).
For the December quarter, Blackstone (BX) reported a 35% rise in the real estate division’s total revenue from the corresponding quarter last year.
The Blackstone Group (BX) reported an economic income of $132 million in its private equity division for the June-ending quarter.
The Blackstone Group (BX) reported its second quarter earnings on July 21. The company beat Wall Street analysts’ economic net income estimates of $0.39.
The Office of National Statistics published the retail sales for June at a six-month low. Retail sales fell by 0.9% on a month-over-month basis.
Key Asian indexes (AAXJ) were trading lower on July 22 as the ECB’s (European Central Bank) monetary policy disappointed the global market.
American Express is going through a restructuring phase. Its new initiatives and aggressive spending should help it gain new partnerships and clients.
American Express’s (AXP) adjusted net profits rose 7% in 2Q16 on increased spending, especially in international markets.
American Express’s (AXP) Global Network and Merchant Services segment’s total revenues, net of interest expenses, fell 3% to $1.1 billion in 2Q16.
American Express’s (AXP) Global Commercial Services’ total revenues, net of interest expenses, remained flat at $2.5 billion in 2Q16.
American Express’s (AXP) International Card Services’ total revenues, net of interest expenses, rose 6% to $1.4 billion in 2Q16 compared to $1.3 billion in 2Q15.
American Express’s (AXP) US Card Services segment’s total revenues, net of interest expenses, fell 3% to $3.2 billion in 2Q16.
American Express (AXP) reported its 2Q16 earnings on July 20. With EPS (earnings per share) of $2.10, the company beat Wall Street analysts’ estimates of $1.96.
Goldman Sachs trades at a 10% discount to its book value and 11x its one-year forward earnings. Currently, its valuations are suppressed.
If EU leaders shift their Eurozone securities and currency trading to other exchanges in the Eurozone, Goldman Sachs could face massive business loss.
Goldman Sachs derives 16% of its revenues from the investing and lending business. So far, 2016 has been a rough year for the financial sector.
Goldman Sachs has been cutting costs in recent quarters. In 2016, 2,600 people may have lost their jobs at GS—the highest number since the financial crisis.