Would You Still Hold Blackstone Stock If It Fell Another 30%?
Blackstone (BX) stock is down 20.3% in 21 trading days. The recent slide reflects renewed concerns around interest rate impacts on alternative assets and slower realizations, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Blackstone stands today.
- Size: Blackstone is a $93 Bil company with $11 Bil in revenue currently trading at $118.22.
- Fundamentals: Last 12 month revenue growth of 21.9% and operating margin of 0.0%.
- Liquidity: Has Debt to Equity ratio of 0.14 and Cash to Assets ratio of 0.05
- Valuation: Blackstone stock is currently trading at P/E multiple of 34.2 and P/EBIT multiple of 0.0
- Has returned (median) 78.3% within a year following sharp dips since 2010. See BX Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Very High valuation – making the stock Risky. For details, see Buy or Sell BX Stock
That brings us to the key consideration for investors worried about this fall: how resilient is BX stock if markets turn south? This is where our downturn resilience framework comes in. Suppose BX stock falls another 20-30% to $83 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- BX stock fell 51.5% from a high of $148.88 on 29 November 2021 to $72.16 on 28 December 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 13 September 2024
- Since then, the stock increased to a high of $199.05 on 24 November 2024 , and currently trades at $118.22
| BX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -51.5% | -25.4% |
| Time to Full Recovery | 625 days | 464 days |
2020 Covid Pandemic
- BX stock fell 44.0% from a high of $64.41 on 11 February 2020 to $36.04 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 15 December 2020
| BX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -44.0% | -33.9% |
| Time to Full Recovery | 267 days | 148 days |
2018 Correction
- BX stock fell 30.5% from a high of $39.69 on 24 September 2018 to $27.60 on 19 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 23 April 2019
| BX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -30.5% | -19.8% |
| Time to Full Recovery | 125 days | 120 days |
2008 Global Financial Crisis
- BX stock fell 89.0% from a high of $34.41 on 22 June 2007 to $3.80 on 26 February 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 10 March 2014
| BX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -89.0% | -56.8% |
| Time to Full Recovery | 1,838 days | 1,480 days |
Feeling jittery about BX stock? Consider portfolio approach.
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