Why BlackRock Fell Today

Key Points

• BlackRock delivered mixed earnings, leading to a sell-off.

• However, the bottom-line beat means shareholders shouldn't worry.

• Chalk today's decline up to a routine round of profit-taking after a big recent run.

• 10 stocks we like better than BlackRock ›

Shares of BlackRock (NYSE: BLK), the world's largest asset manager, fell 5.4% on Tuesday as of 3 p.m. ET.

BlackRock reported earnings that actually beat on the bottom line, but missed on the top line. With a somewhat full valuation and investors wary of how fast the world's largest asset manager can grow with markets at all-time highs, the stock shed some recent gains.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

A mixed quarter isn't good enough for Wall Street's expectations

In the second quarter, BlackRock grew revenue 12.7% to $5.42 billion, while adjusted non-GAAP (generally accepted accounting principles) earnings per share grew 16.3% to $12.05. That top-line number actually missed expectations, but the bottom-line figure handily beat expectations by $1.23.

The culprit behind the miss on revenues was a single institutional client that redeemed $52 billion on lower-fee indexes. That redemption led to lower-than-expected net inflows of $68 billion; however, as the redemption was of relatively low-fee indexes, BlackRock was still able to maintain strong profit growth.

Solid growth was also expected, too, because of BlackRock's $12.5 billion acquisition of Global Infrastructure Partners, which closed in October 2024.

Image source: Getty Images.

Nothing except profit-taking

Today's sell-off likely has more to do with profit-taking following the stock's near-40% recovery off of April's lows than anything else. BlackRock shares also came into the day trading around 27 times earnings, while paying a dividend yield just under 2%.

That's not terribly expensive for a really high-quality growth company, although it's not especially cheap for a financial stock. Therefore, long-term investors in BlackRock stock should continue to hold, though those who don't would probably do well to wait for more market-related fear and a lower valuation to enter.

Should you invest $1,000 in BlackRock right now?

Before you buy stock in BlackRock, 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 BlackRock 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 $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,005,670!*

Now, it’s worth noting Stock Advisor’s total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.