BlackRock's unexpected earnings miss sends stock plummeting
BlackRock's shares fell 5.5% on July 15, even though the company posted record assets under management of $12.53 trillion and beat earnings per share estimates for the quarter, while missing revenue forecasts, which contributed to the stock's decline.
BlackRock misses revenue forecasts
Even with a 13% jump in revenue from last year, BlackRock missed Wall Street's target by a hair.
Investors were more concerned that net inflows and organic growth—basically, how much new money is coming in—didn't meet company goals.
For young investors or anyone watching big finance, it's a reminder that growth expectations can move markets more than headline numbers.
Organic growth below target range
BlackRock's organic growth was just 1.7%, below its usual 3%-5% target range, which made people question if its rapid rise can keep up.
Operating margins also shrank a bit this quarter.
Still, their iShares ETFs kept attracting steady investment, showing that passive funds remain popular—even when the market gets nervous about bigger trends.