BX

Looking back on asset management stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Blackstone (NYSE:BX) and its peers. Asset management firms oversee investment portfolios for institutions and individuals. The industry benefits from the growing global wealth pool, retirement savings needs, and expansion into alternative investments (private equity, real estate, etc.). However, firms face significant pressure from the shift to lower-cost passive investment products, regulatory requirements for fee transparency, and increasing technology costs to stay competitive in portfolio management and client service. The 5 asset management stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 8.4%. Thankfully, share prices of the companies have been resilient as they are up 5.6% on average since the latest earnings results. With over $1 trillion in assets under management and investments spanning real estate, private equity, credit, and hedge funds, Blackstone (NYSE:BX) is a global alternative asset manager that invests capital on behalf of pension funds, sovereign wealth funds, and other institutional investors. Blackstone reported revenues of $3.83 billion, up 23.8% year on year. This print exceeded analysts’ expectations by 10.9%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS estimates and a narrow beat of analysts’ AUM estimates. Interestingly, the stock is up 12.2% since reporting and currently trades at $137.77. Read why we think that Blackstone is one of the best asset management stocks, our full report is free. Founded in 1987 with just $5 million in capital and named after the iconic New York hotel where the founders first met, The Carlyle Group (NASDAQ:CG) is a global investment firm that raises, manages, and deploys capital across private equity, credit, and investment solutions. Carlyle reported revenues of $1.11 billion, up 13% year on year, outperforming analysts’ expectations by 20.7%. The business had a stunning quarter with a beat of analysts’ EPS estimates and a narrow beat of analysts’ AUM estimates. Carlyle pulled off the biggest analyst estimate beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 7.2% since reporting. It currently trades at $46.97. Is now the time to buy Carlyle? Access our full analysis of the earnings results here, it’s free. With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE:ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients. Ares reported revenues of $1.28 billion, up 25.6% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a narrow beat of analysts’ AUM estimates. Ares delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 12.9% since the results and currently trades at $140.11. Read our full analysis of Ares’s results here. Founded in 1992 and managing over 300 active portfolio companies across more than 30 countries, TPG (NASDAQ:TPG) is a global alternative asset management firm that invests across private equity, credit, real estate, and public market strategies. TPG reported revenues of $610.4 million, up 24.7% year on year. This result surpassed analysts’ expectations by 7.8%. It was a stunning quarter as it also put up an impressive beat of analysts’ AUM estimates and a beat of analysts’ EPS estimates. The stock is up 8.3% since reporting and currently trades at $53.04. Read our full, actionable report on TPG here, it’s free. Founded in 1994 with a focus on autonomous investment teams and a "high-value-added" approach, Artisan Partners (NYSE:APAM) is an investment management firm that offers actively managed equity and fixed income strategies to institutional and individual investors. Artisan Partners reported revenues of $307.9 million, up 8.9% year on year. This number beat analysts’ expectations by 2.3%. Overall, it was a strong quarter as it also recorded a beat of analysts’ EPS estimates and AUM in line with analysts’ estimates. Artisan Partners had the slowest revenue growth in the group. The stock is up 1.7% since reporting and currently trades at $41.57. Read our full, actionable report on Artisan Partners here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

A month has gone by since the last earnings report for Circle Internet Group, Inc. (CRCL). Shares have added about 63.1% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Circle Internet Group, Inc. due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Circle Internet Group, Inc. before we dive into how investors and analysts have reacted as of late. Key Highlights Total revenues and reserve income: Second-quarter 2026 total revenues and reserve income were $701.0 million, up 7% from $658.0 million in second-quarter 2025, driven by higher average USDC circulation and other revenues, partly offset by a lower reserve return rate. EPS was 18 cents in second-quarter 2026, versus a loss per share of $4.48 in second-quarter 2025. Net income from continuing operations was $48.0 million in second-quarter 2026, improving from a $482.0 million loss in second-quarter 2025. USDC in circulation: End-of-period USDC in circulation reached $73.3 billion, up 19% from $61.3 billion in second-quarter 2025. Average USDC circulation was $76.5 billion, up about 25% from $61.0 billion. Adjusted EBITDA: Adjusted EBITDA was $143.0 million, up 8% from $133.0 million in second-quarter 2025. Adjusted EBITDA margin was 50%, down from 53% a year earlier. Revenue less distribution costs (RLDC): RLDC was $289.0 million, up 15% from $251.0 million in second-quarter 2025. RLDC margin expanded to 41.2%, up from 38.2%. Network activity: USDC onchain transaction volume was $14.8 trillion, up 151% from $5.9 trillion in second-quarter 2025. Mint and redeem volume was $170.0 billion, up 105% from $83.0 billion. Circle's second-quarter 2026 results showed the core trade-off in the model: volume and circulation growth remained strong, while interest-rate pressure limited revenue upside. Reserve income rose to $668.0 million from $634.0 million in second-quarter 2025, a 5.3% increase. The company attributed the increase to a 25.2% rise in average daily USDC in circulation, worth roughly $147.4 million of benefit, mostly offset by a 66-basis-point decline in average yields, which reduced reserve income by about $113.9 million. Reserve income remained the dominant revenue stream, representing 95.2% of second-quarter 2026 total revenue. This remains a key sensitivity for investors because Circle earns income on assets backing USDC and EURC at rates close to prevailing SOFR. The reserve return rate was 3.48% in second-quarter 2026, down from 4.14% in second-quarter 2025 and slightly below 3.50% in first-quarter 2026. Other revenues were $34.0 million, up 41% from $24.0 million in second-quarter 2025 but down from $42.0 million in first-quarter 2026. The year-over-year gain reflected more integration services, fund management fees and redemption fees. Sequentially, management cited fewer blockchain integrations, lower validator awards, weaker digital asset market conditions and a deliberate shift in focus toward Arc. Circle continued to show stronger platform attachment. USDC held on Circle's platform was $12.4 billion at second-quarter 2026 quarter-end, up 106% from $6.0 billion in second-quarter 2025. The daily weighted-average percentage of USDC on the platform rose to 19.5% compared with 7.4% a year earlier. This mix supported margin expansion, as more USDC held within Circle's platform improves economics under its distribution arrangements. CPN also scaled quickly. Annualized transaction payment volume reached nearly $15.0 billion at second-quarter 2026 quarter-end on a trailing 30-day basis, up 76% quarter over quarter. The network reached 175 financial institutions, nearly 30% higher sequentially and was live or rolling out across 58 countries. As of July 31, 2026, annualized TPV had reached $23.0 billion. Arc remained the most important product catalyst. Arc testnet had processed 502 million cumulative transactions and 2.8 million cumulative transacting wallets as of June 30, 2026. Arc Mainnet was scheduled to launch on Sept. 16, 2026, with more than 100 private mainnet partners and validators, including major financial and payments firms. Circle completed a $242.0 million Arc Token presale in second-quarter 2026, with about $180.0 million expected to be recognized in 2026 as milestones are achieved. Total distribution, transaction and other costs were $412.0 million, only slightly above $407.0 million in second-quarter 2025, allowing RLDC margin to expand. Adjusted operating expenses were $146.0 million, up 23% from $119.0 million, reflecting investment in product development, go-to-market infrastructure, Arc marketing, G&A, infrastructure and AI capabilities. Circle ended second-quarter 2026 with $77.2 billion in total assets, down from $78.7 billion as of Dec. 31, 2025. Cash and cash equivalents, including corporate-held stablecoin balances, increased 11.5% to $2.6 billion. Cash segregated for stablecoin holders declined 2.5% to $73.2 billion, consistent with lower USDC in circulation versus year-end 2025. Stockholders' equity rose 5.4% to $3.5 billion. Management raised 2026 other revenue guidance to $310.0 million to $330.0 million from $150.0 million to $170.0 million and raised 2026 RLDC margin guidance to 41.7% to 43.7% from 38% to 40%. Adjusted operating expense guidance stayed at $570.0 million to $585.0 million, but management now expects to finish near the high end. In the past month, investors have witnessed a flat trend in estimates revision. The consensus estimate has shifted 16.09% due to these changes. Currently, Circle Internet Group, Inc. has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock has a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Circle Internet Group, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Circle Internet Group, Inc. belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Blackstone Inc. (BX), has gained 3.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Blackstone Inc. reported revenues of $3.8 billion in the last reported quarter, representing a year-over-year change of +23.7%. EPS of $1.52 for the same period compares with $1.21 a year ago. Blackstone Inc. is expected to post earnings of $1.36 per share for the current quarter, representing a year-over-year change of -10.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.8%. Blackstone Inc. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Circle Internet Group, Inc. (CRCL) : Free Stock Analysis Report Blackstone Inc. (BX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). 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Blackstone stock has delivered a strong 3 year return, yet the current market price screens as expensive on both an intrinsic value estimate and on market multiples. The key issue for investors is that Blackstone does not currently look like a clear bargain based on these checks. Over the past 3 years, Blackstone has returned about 50.8% which means recent investors have already seen substantial gains that may limit the margin for error at today’s price. Future fee growth and cash flows from its investment platform can support the current valuation, while any slowdown in fundraising or weaker realizations may put pressure on what already looks like a premium price. On a broad set of valuation checks, Blackstone scores 2 out of 6, which suggests the stock leans expensive rather than offering an obvious discount. For investors, the debate is whether Blackstone's current share price already reflects the bulk of its expected cash flow and fee growth, or if there is still room for further upside without stretching valuation too far. Balance your view on Blackstone by scanning 45 high quality undervalued stocks, which still look attractively priced based on cash flows and balance sheet strength. The Excess Returns model estimates what Blackstone can earn over and above the return that equity investors require. For Blackstone, the inputs point to a business that is expected to earn more on its equity base than the model’s cost of capital. The model uses a Book Value of $11.27 per share and a Stable EPS of $5.39 per share, based on future return on equity estimates from 7 analysts. Against a Cost of Equity of $0.96 per share, that implies an Excess Return of $4.43 per share and an average Return on Equity of 44.94%. A Stable Book Value of $12.00 per share, based on estimates from 3 analysts, feeds into an intrinsic value estimate of $114 per share. Compared with the current share price, the Excess Returns output implies the stock is about 25.2% above this intrinsic value estimate, so Blackstone shares screen as overvalued on this method. On these Excess Returns assumptions, Blackstone stock currently looks overvalued relative to its modeled intrinsic worth. Our Excess Returns analysis suggests Blackstone may be overvalued by 25.2%. Discover 45 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Blackstone. The P/E ratio suits Blackstone because earnings are a central marker of how its fee based business is priced. Right now Blackstone trades on a P/E of 32.6x, which is a little below the wider Capital Markets industry average of 39.5x and slightly below the peer group average of 33.8x. On raw comparisons, that does not place the stock at a big premium to similar companies. The tailored fair P/E ratio for Blackstone is 27.3x. This reflects what investors might typically pay given its size, sector and risk profile. The gap between this fair multiple and the current 32.6x suggests the stock is priced above what this model would usually support, even if the headline industry comparison does not look extreme. On the P/E multiple, Blackstone stock screens as overvalued relative to the fair ratio implied by its fundamentals and risk profile. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Blackstone pick up where this valuation puzzle leaves off. They spell out the specific assumptions on growth, margins and earnings that would need to hold for Blackstone's stock to be worth materially more or less than its current price. Each one ties a fair value to a particular story about the company’s possible catalysts and risks, so you can monitor which version of events appears to be unfolding over time on the Community page. Community views on Blackstone are split between those who see resilient fee growth ahead and those who focus on execution risk in newer areas like infrastructure and data centers. Bull case: roughly fairly valued Read the full Bull Case to see why Blackstone could be undervalued Bear case: 20% overvalued Read the full Bear Case to see why Blackstone could be overvalued Do you think there's more to the story for Blackstone? Head over to our Community to see what others are saying! Blackstone screens as overvalued on both the Excess Returns intrinsic value estimate and the tailored P/E multiple, so the current price already bakes in a lot of optimism. The broader valuation checks are weak, which reinforces the idea that you are paying a premium for the story rather than a clear discount. From here, the key question is whether Blackstone can sustain strong fee growth and realizations to keep justifying that premium, or whether any slowdown in fundraising or newer investment areas causes the multiple to drift closer to the modeled fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Nvidia NVDA) stock has surged more than 7% on Thursday after the AI chip giant delivered another blockbuster quarterly report yesterday evening and, more importantly, gave Wall Street considerably more confidence that its extraordinary growth can extend well into next year. Ahead of the report, several key questions surrounded Nvidia's Q2 results: whether its Vera Rubin platform was ramping on schedule, if gross margins could remain near 75%, and how much of the massive AI infrastructure buildout Nvidia would ultimately have to finance itself. The answers were mostly encouraging, although investors still have a few risks to weigh before chasing today's rally. Image Source: Zacks Investment Research Nvidia posted Q2 revenue for its current fiscal 2027 of $96.22 billion, soaring 106% from $46.74 billion in the prior year quarter and comfortably topping estimates of $91.79 billion. Adjusted net income came in at $53.95 billion, or earnings of $2.22 per share, up 120% year over year and beating Q2 EPS expectations of $2.09 by 6%. Data Center sales were the standout once again, jumping 117% to a record $89 billion. Image Source: Zacks Investment Research Even more impressive was Nvidia’s outlook. The chip giant expects Q3 revenue of $108 billion, plus or minus 2%, with no Data Center compute sales from China included in that forecast. Management also offered a preliminary expectation for roughly 70% revenue growth in fiscal 2028, despite anticipating that supply will remain constrained through the end of that reporting year. That longer-term outlook arguably provided the biggest catalyst for today's rally, as Wall Street had been bracing for a much steeper slowdown in Nvidia's growth rate. To that point, its Q3 revenue forecast came in above analyst consensus estimates of $102 billion (Current Qtr below), while the FY28 preliminary revenue forecast is well ahead of Zacks current projections of $553.24 billion or 42% growth. Image Source: Zacks Investment Research The Vera Rubin ramp also provided the confirmation investors were looking for. Production shipments began earlier this month, and Nvidia says it has already received purchase orders from every major hyperscaler, AI cloud provider, and system original equipment manufacturer (OEM). Management expects Vera Rubin to account for roughly 20% of Data Center revenue in Q3 and believes it could become the fastest product ramp in Nvidia's history. This suggests Nvidia is transitioning from its Blackwell platform to its next-generation AI architecture without the growth pause investors might normally expect during a major product cycle. Profitability remains exceptional, but this was one area where the report was less reassuring. Nvidia maintained a 75% gross margin in Q2, but management expects it to slip to roughly 74% in Q3 and bottom between 71% and 72% in Q4 as surging memory prices increase system costs. Nvidia expects margins to settle around 72%-73% in FY28, with planned price increases beginning to provide some relief early next year. Considering Nvidia's staggering revenue growth, these margins remain enviable. Still, investors should no longer assume that mid-70% gross margins are guaranteed as increasingly complex AI systems push component costs higher. Over the trailing twelve months (TTM), Nvidia’s 74% gross margin has impressively outpaced the S&P 500’s 53% average and has topped its Zacks Semiconductor-General Industry average of 72% Image Source: Zacks Investment Research Nvidia's balance sheet remains formidable. The company finished Q2 with roughly $99 billion in cash and marketable debt and equity securities, while generating $24.1 billion in operating cash flow during the quarter. However, Nvidia is deploying significant amounts of capital across its ecosystem. Non-marketable securities rose to more than $51 billion from $22 billion at the beginning of the fiscal year, while the company purchased $15.8 billion of equity securities during Q2 alone. Its supply and capacity commitments also surged from $119 billion last quarter to roughly $279 billion as Nvidia locks down memory and manufacturing capacity for future demand. That said, Nvidia appears to be finding ways to bring much deeper pockets into the AI buildout. Its partnerships with major investment firms Apollo Global Management APO), BlackRock BLK), Blackstone BX), Brookfield Asset Management BAM), Goldman Sachs GS) and KKR KKR) are intended to mobilize more than $500 billion of third-party capital for AI infrastructure, creating independent pools of financing for Nvidia customers. That could gradually shift more of the burden away from Nvidia's own balance sheet, although investors should continue monitoring its guarantees, strategic investments, and other commitments as the AI spending boom grows larger. Despite today's rally, Nvidia stock is still trading at just under 24X forward earnings following its impressive Q2 EPS beat. Furthermore, upward earnings estimate revisions after such a strong report and outlook could quickly make Nvidia’s valuation even more appealing. Notably, NVDA is trading near its decade-low forward P/E of 20X and at a nearly 50% discount to its 10-year median of 45X. Image Source: Zacks Investment Research And if you're wondering, NVDA’s return over the last decade is near a staggering 14,500% Image Source: Zacks Investment Research There is considerably more to like about Nvidia following Q2 earnings. The company crushed expectations, issued strong Q3 guidance, provided surprisingly bullish FY28 commentary, and offered concrete evidence that Vera Rubin is already becoming its next major revenue engine. Margin pressure and Nvidia's enormous financial commitments prevent the story from being completely risk-free, and investors don't necessarily have to chase a 7% one-day spike. Still, the rally appears fundamentally supported rather than simply driven by post-earnings enthusiasm. Most importantly, NVDA now sports a Zacks Rank #2 (Buy), reflecting a favorable earnings-estimate revision outlook. For long-term investors, Nvidia's valuation still looks surprisingly reasonable relative to its growth trajectory, making pullbacks particularly attractive and today's post-earnings rally difficult to bet against. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Blackstone Inc. (BX) : Free Stock Analysis Report BlackRock (BLK) : Free Stock Analysis Report KKR & Co. Inc. (KKR) : Free Stock Analysis Report Brookfield Asset Management Ltd. (BAM) : Free Stock Analysis Report Apollo Global Management Inc. (APO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The big concern with business development companies (BDCs) in 2026 has been credit quality. Notably, several large private credit funds have limited withdrawals this year, including Blackstone's (NYSE: BX) Blackstone Private Credit fund, an industry giant. But concerns among investors may be waning, as evidenced by Barings BDC (NYSE: BBDC) issuing $350 million in debt. What does this really mean for the BDC sector? Business development companies make loans to smaller companies that don't otherwise have access to capital. The BDC is supposed to provide guidance to the companies it lends to, in addition to loans. To fund the loans, the BDC must have capital of its own. A BDC can raise its own capital by either issuing stock or taking on its own debt. Essentially, the BDC is attempting to make the difference between its cost of capital and the interest it charges on the loans it makes to other companies. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » The average interest rate Barings BDC charged in the second quarter was 9.4%. The debt it just issued carried an interest rate of 6.5%. BDCs can charge high rates because the companies they work with don't have more attractive options. Being able to charge such high yields isn't unusual at all. For example, Blue Owl Capital (NYSE: OBDC) had an average interest rate of 9.9% in the second quarter. Main Street Capital's (NYSE: MAIN) portfolio had an effective yield of 10.2%. Ares Capital Corporation (NASDAQ: ARCC) had an average interest rate of 10.3%. So, from a business standpoint, BDCs' ability to issue new debt is a positive. It allows the companies to continue making new loans to expand their portfolios. And Barings BDC was able to issue debt at a reasonable rate. However, there's something interesting about the Barings BDC debt issuance: it had a fixed interest rate and maturity. That's not unusual for a bond, but BDCs often use lines of credit to fund the loans they make. Barings BDC is using the proceeds from the bond issuance to pay down its lines of credit, effectively locking in a rate and maturity. This is important to note because lines of credit can be terminated by lenders, whereas bonds can't, and lines of credit often have variable rates. This move could potentially help Baring BDC avoid a credit crunch if market conditions turn against it. Such an event could be caused by its portfolio loans facing payment issues, or simply by Baring BDC's own lenders becoming more risk-averse. The risk for Baring BDC, and any other BDC that issues similar debt, is that the interest rate is locked in. BDCs often use variable rates when making loans to small companies. If rates fall, the interest they generate from their loan portfolios could be squeezed if they have material fixed-rate debt backing those loans. Of course, if rates rise, as some expect, the opposite would occur, and the yield spread would widen. But rates fluctuate over time, so the impact wouldn't be unidirectional. There are a lot of moving parts here, but the positive of this issuance is that Barings BDC was able to do it at all. There have been a couple of other BDCs that have also issued debt recently, as well. And that means that the credit worries that had been hampering BDCs may have passed. This is good news. However, don't ignore the finer details here, as they could become more meaningful in the future if the Federal Reserve makes rate changes to address elevated inflation. Before you buy stock in Barings Bdc, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Barings Bdc wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,461!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,307,633!* Now, it’s worth noting Stock Advisor’s total average return is 973% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 27, 2026. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ares Capital and Blackstone. The Motley Fool has a disclosure policy. BDCs Are Selling Investment-Grade Bonds Again After a Frozen Quarter was originally published by The Motley Fool

It has been about a month since the last earnings report for Applied Digital Corporation (APLD). Shares have added about 8.4% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Applied Digital Corporation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Applied Digital reported a loss of 39 cents per share in the fourth quarter of fiscal 2026, a deterioration from a loss of 24 cents registered in the year-ago quarter. The figure was wider than the Zacks Consensus Estimate of a loss of 18 cents by 116.67%.Revenues surged 407% year over year to $258.7 million, driven by the ramp-up of HPC tenant fit-out services at Polaris Forge 1 and continued strength in the Data Center Hosting Business. The figure beat the Zacks Consensus Estimate of $240 million by 7.79%. APLD's Segment Performance The Data Center Hosting Business generated $37.3 million in revenues, materially consistent year over year with stable operating conditions, as both Jamestown (106 MW) and Ellendale (180 MW) operated at full capacity as of May 31. The segment generated $12.5 million in operating profit during the quarter, on a reported asset base of $113.8 million, and continues to be the company's highest return on asset business.The HPC Hosting Business contributed $203 million in revenues during the quarter. This included $152.4 million from tenant fit-out services, $44.1 million related to base rent and $6.5 million related to tenant recoveries. The segment generated an operating profit of $26.2 million. The business now spans five contracted campuses totaling roughly 1.4 gigawatts of critical IT load, following three new leases signed with a single high-investment-grade hyperscaler since the prior quarter.During the quarter, the company completed the separation of its Cloud Services Business, combining it with Ekso Bionics Holdings to form ChronoScale Holdings Corporation. Applied Digital retained approximately 96% ownership. Reflecting this, the company consolidated ChronoScale revenues of $18.4 million for the quarter. The segment is excluded from the company's non-GAAP results going forward as management evaluates the Data Center Hosting and HPC Hosting businesses as its core operations. APLD's Operating Details Services cost of revenues jumped 256% year over year to $193.1 million, primarily reflecting $145.6 million associated with tenant fit-out services for the HPC Hosting Business. Data center rental and other cost of revenues came in at $25.1 million, primarily comprising depreciation and amortization on the first HPC data center at Polaris Forge 1, along with reimbursable tenant recovery expenses.Selling, general and administrative expenses surged 303% year over year to $165.3 million. The increase was driven by $116.8 million in stock-based compensation tied to accelerated vesting of employee stock awards and grant activity related to the ChronoScale separation, as well as $7.3 million in personnel expenses tied to headcount growth and $5.6 million in professional services expense.Interest expense net rose 26% year over year to $10.6 million, as a $31.9 million increase in interest expense from new debt arrangements was partially offset by a $30.5 million increase in interest income from higher balances held in interest-bearing demand deposit accounts.The company recognized a $53.3 million gain on the change in fair value of derivatives, comprising a $69.9 million increase in the value of its Babcock & Wilcox common stock warrant partially offset by a $16.7 million decrease in the fair value of derivative assets tied to preferred units. It also recorded a $4.8 million gain on the change in fair value of investments, reflecting the appreciation of its B&W common stock position. Neither gain was present in the year-ago quarter. APLD's Balance Sheet and Cash Flows As of May 31, Applied Digital held cash, cash equivalents and restricted cash of approximately $4.2 billion compared with $2.1 billion as of Feb. 28. Total debt stood at approximately $5 billion compared with $2.7 billion at the end of the third quarter of fiscal 2026, reflecting the closing of $2.15 billion of senior secured notes tied to Polaris Forge 2, along with a new revolving credit facility.Operating cash flow was positive $89.7 million for the fiscal year ended May 31, 2026, a marked improvement from cash used in operations of $115.4 million in the prior fiscal year, aided by a strong step-up in collections during the fourth quarter. APLD Offers Positive Outlook Applied Digital ended the fiscal year with roughly 1.4 gigawatts of contracted critical IT load across five AI Factory campuses, representing approximately $36 billion in total contracted lease revenue, or approximately $86 billion including renewal options. It is actively marketing another 1.7 gigawatts across multiple states, citing robust demand and rising lease rates.Management is in advanced talks to expand capacity by 100 MW and 150 MW with two existing investment-grade customers, which would lift total capacity to 1.66 gigawatts and add over $6 billion in contracted revenue at current rates. The company is also working with Base Electron to develop roughly 1.2 gigawatts of natural gas fired generation in the Dakotas to support further expansion.Applied Digital now expects to hit its $1 billion annual net operating income target roughly three years ahead of schedule, with quarterly capex guided at approximately $600 million as construction continues across its campuses. In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -27.5% due to these changes. Currently, Applied Digital Corporation has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a score of F on the value side, putting it in the fifth quintile for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Applied Digital Corporation has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Applied Digital Corporation is part of the Zacks Financial - Miscellaneous Services industry. Over the past month, Blackstone Inc. (BX), a stock from the same industry, has gained 7.1%. The company reported its results for the quarter ended June 2026 more than a month ago. Blackstone Inc. reported revenues of $3.8 billion in the last reported quarter, representing a year-over-year change of +23.7%. EPS of $1.52 for the same period compares with $1.21 a year ago. Blackstone Inc. is expected to post earnings of $1.36 per share for the current quarter, representing a year-over-year change of -10.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -4%. Blackstone Inc. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Digital Corporation (APLD) : Free Stock Analysis Report Blackstone Inc. (BX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Blue Owl Technology Finance Corp. (NYSE:OTF) priced $400 million of bonds Monday, double the $200 million it initially sought, in a tap of the 6.500% notes due 2029 it first sold in June, according to a prospectus supplement filed Monday. Blackstone Inc.‘s (NYSE:BX) BCRED did the same, raising $750 million against a roughly $500 million target. The two upsized deals were the first real test of appetite for business development company debt since the start of the third quarter, Bloomberg reported. Blue Owl Capital Inc., which manages Blue Owl Technology, sold $750 million in notes last week, as investor demand reached as much as $3.3 billion for the offering. RBC, SMBC, ING Groep NV, Mizuho Financial Group and Societe Generale SA managed Monday’s transaction for Blue Owl Technology. Read Also: Anthropic CEO Says AI Could Cure Most Human Disease in 5-10 Years — but Admits Big Promises Haven't Landed Earlier this year, Blue Owl Capital held a similar offering, raising $400 million from bond investors. The bonds were issued by Blue Owl Capital Corp. (OBDC) and are investment-grade rated notes. The bonds were yielding 6.4% and were set to mature in September 2028, according to an SEC filing. Pacific Investment Management Co. (PIMCO) acquired all of the $400 million bond offering shortly after. In April, Blackstone’s BCRED raised $850 million in an investment-grade bond deal after initially looking to raise $500 million. Business development company (BDC) equities are signaling growing investor skepticism over private credit valuations, even as BDC bonds have recovered much of their recent underperformance, a recent report from Lotfi Karoui at PIMCO noted. Investors are demanding a higher risk premium to compensate for uncertainty about the value of loans held by BDCs, which finance small and midsize private U.S. companies, he added. Earlier this month, Barings Private Credit Corp. priced a $350 million offering on Aug. 13, the second U.S. high-grade note sale by a BDC since the start of July. Photo: Shutterstock Read Also: BDC Stocks Signal Growing Doubts Over Private Credit Valuations This article Blackstone, Blue Owl Funds Upsize Bond Sales After Third-Quarter Lull in Private Credit Issuance originally appeared on Benzinga.com © 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

(Bloomberg) -- CoreWeave Inc. shares have been on a roll lately after a monthslong slump. Now, the neocloud provider’s earnings after the close Tuesday can give investors a sense of whether the rally is sustainable. Most Read from Bloomberg China Unleashes $28 Trillion Capital Markets to Challenge US in AI Nvidia Taps Wall Street for $500 Billion Funding Commitment Trump Makes Sweeping New Demands on Iran as Deal Hopes Dim Stocks Churn as Hormuz Standoff Spurs Rally in Oil: Markets Wrap Iran Shakes Up Security Team After Saying Oman Deal ‘Very Close’ The problem is, quarterly results tend to bring out the worst in the stock, which has fallen after each of the company’s last five earnings reports, according to data compiled by Bloomberg. “It almost doesn’t matter what they say on their earnings,” said Willy Lee, principal at venture firm Neostellar, which has held shares of CoreWeave since before its initial public offering. “The market’s still I think locked in on pieces of their earnings where I’m not sure if people fully understand parts of the story, and I think it’s just taken time for people to digest.” It’s been a rocky ride in the stock market for CoreWeave, which rents cloud-computing power for artificial intelligence, since going public in March 2025. The shares have been whip-lashed by the expiration of early investor lockups and shifting sentiment surrounding AI. They more than tripled in their first few months of trading, gave back a good chunk of that gain over the next few months, and have flipped between periods of steep gains and sharp losses ever since. Through it all, the stock is up 120% since the IPO and 23% this year. However it’s still down 41% from the all-time high it hit almost exactly a year ago. The latest downturn started in May after the company’s first-quarter earnings report featured a disappointing forecast that sparked concerns about slowing growth. The stock plunged 56% from a high in May to a low in July. But it has recovered almost half that loss, with a 21% jump in a single session after CoreWeave and Leidos Holdings Inc. announced they were developing AI cloud services for US defense and intelligence operations, followed by last week’s 26% gain, its best performance in over a year. After all that, the company’s earnings will offer a clearer view of where CoreWeave stands at this critical juncture. The company has been spending to build more data center capacity, and it has said that the benefits of those investments should start showing up in the second half of this year, making management’s forward guidance even more crucial than they’ve ever been. “It’s great if you can bring on capacity, but you have to make money from that,” said BNP Paribas analyst Stefan Slowinski, who has an outperform rating on the stock. “The risk is if they’re cautious on that Q3 guidance on the operating profits, then it may not answer those concerns people have. And if all of that has to come in the fourth quarter, then just like with any stock it creates risk if you’re sort of putting all of your eggs into the Q4 basket.” Wall Street expects the Livingston, New Jersey-based company to report a 111% rise in second-quarter revenue to $2.6 billion, and an adjusted net loss of $649 million compared with $131 million a year ago. Analysts have grown increasingly skeptical about this report, raising their projections for CoreWeave’s adjusted loss by 8.4% in the last month and 18% over the last three months. CoreWeave also is expected to post an adjusted operating margin of 2.9% in the second quarter. The figure will be key for investors after falling to about 1% in the first quarter. “I’m hoping that that margin was the low that we’ll see for the year, and that when they report this quarter, it’ll be up from the March trough and they guide to increases each and every quarter in margin,” said Paul Meeks of Freedom Capital Markets. “That’ll make me feel that the ding in short term property profitability is indeed behind us.” The optimism is reasonable considering the biggest AI spenders like Alphabet Inc., Meta Platforms Inc. and Microsoft Corp. are maintaining or raising their capital expenditure plans. The three companies make up roughly 80% of CoreWeave’s revenue, according to data compiled by Bloomberg. At the same time, the field is becoming increasingly competitive. Elon Musk’s SpaceX has inked a number of deals to sell AI computing power, and Meta is reportedly developing plans to do the same. Still, Wall Street remains bullish on CoreWeave due to the overwhelming demand for AI infrastructure. Of the 43 analysts tracked by Bloomberg who cover the company, 29 have buy ratings. The average price target of around $138 implies shares will climb 57% over the next 12 months. “AI infrastructure demand remains exceptionally strong and capacity largely sold out,” Citi’s Tyler Radke, who has a buy rating on the stock, wrote in an August 4 note to clients. Of course, the stock’s position — up from a recent trough but still significantly below its all-time high — also sets up a potential buying opportunity. That is, as long as CoreWeave can deliver a solid outlook that calms concerns around its return on investment and gives investors confidence that it will be able to borrow at a cheaper cost of capital and deliver profits before long. “If they can do that, then it’s kind of a self-fulfilling prophecy,” BNP Paribas’s Slowinski said. “All that has to come together to increase confidence in the company and in the business model.” Tech Chart of the Day Top Tech Stories Tencent Holdings Ltd.’s early success with WorkBuddy may give the Chinese Internet giant a chance to catch up after lagging peers in the artificial intelligence race for the past few years. Intel Corp. raised $20 billion in an upsized share sale, a third more than it was targeting when it announced the deal Monday morning. US investment giants including Apollo Global Management Inc., Blackstone Inc., BlackRock Inc. and Brookfield Asset Management are partnering with Nvidia Corp. to source $500 billion in financing for artificial intelligence infrastructure. Anthropic PBC has struck a $9.1 billion deal with Riot Platforms Inc., a Bitcoin mining company that recently began selling AI data center capacity, people familiar with the matter said, underscoring the Claude maker’s efforts to secure enough computing power to meet its customers’ demand. Apple Inc. is still planning to offer a glass-centric overhaul of the iPhone for the device’s 20th anniversary, people familiar with the matter said, countering an analyst report that the move had been canceled. Earnings Due Earnings Premarket: Earnings Postmarket: --With assistance from Subrat Patnaik and David Watkins. 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