BlackRock, the world’s largest asset manager, has announced adjusted earnings per share of $11.30 for the first quarter, surpassing Wall Street analysts’ expectations of $10.14. The company was on record-setting booming-ride performance this quarter with $84 billion in net inflows! This recent boom almost quadrupled its total assets under management to nearly $11.6 trillion as of March 31.
Contrary to the good earnings report, BlackRock’s shares jumped only about 0.5% in morning trading. The broader economic picture remains unclear. President Donald Trump’s recent announcement of massive tariffs, and fears of a trade war, have spurred predictions of an impending economic downturn. These tariffs triggered one of the biggest one-day sell offs in the stock market, a clear indication that investor faith is waning.
Recent consumer and business sentiment surveys confirm a sharp drop in confidence. This decline is fueling fears that our fastest-growing industry is hollowing out our economic foundation. BlackRock’s CEO, Larry Fink, noted that many corporate leaders share his belief that the U.S. economy is “probably in a recession.”
“I think we’re very close, if not in, a recession now.” – Larry Fink
Fink suggested that consumers may have been stockpiling goods in anticipation of the impending tariffs, potentially masking underlying economic weaknesses. He placed particular doubt on the administration’s recent announcement to freeze some import tariffs for 90 days. He argued that this latest maneuver goes only a step to address that uncertainty.
“I think you’re going to see, across the board, just a slowdown until there’s more certainty. And we now have a 90-day on the reciprocal tariffs—that means longer, more elevated uncertainty.” – Larry Fink
The firm didn’t miss on revenue. They did generate $5.28 billion, but this was well below consensus expectations of $5.34 billion. Though results have been a mixed bag and economic anxiety continues to mount, Fink is hopeful. He unambiguously thinks the U.S. is not in danger of a financial crisis at the moment.
As BlackRock navigates these turbulent waters, it remains to be seen how the evolving economic situation will impact its performance and the broader market.