Apollo Global Management’s Performance: Evaluating Recent Trends and Challenges
With a market capitalization of $84.4 billion, Apollo Global Management, Inc. (APO) stands out as a prominent global alternative asset manager and private equity firm. Headquartered in New York, the firm specializes in several sectors, including credit, private equity, real estate, infrastructure, and secondary investments, catering to both institutional and individual investors across the globe.
Considering that companies valued at $10 billion or more are typically classified as “large-cap” stocks, Apollo Global Management fits this description well. Its diversified investment approach includes strategies such as traditional buyouts, the acquisition of distressed assets, credit markets phenomena, and investments in sustainable industries. Moreover, Apollo operates on a global scale, with activities extending across North America, Europe, Asia, and Africa.
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Despite these strengths, Apollo has experienced a notable downturn, dropping nearly 22% from its 52-week high of $189.49. Over the last three months, shares have declined by 15.4%, trailing the broader Nasdaq Composite’s ($NASX) decline of 8.8% during the same timeframe.
On a year-to-date basis, shares of APO have decreased by 10.5%, underperforming the NASX’s 5.4% decline. However, Apollo has shown impressive growth of 30.4% over the past year, significantly outperforming NASX’s gain of 11.5% in the same period. Notably, since last year, shares of Apollo Global Management have largely traded above both their 50-day and 200-day moving averages.
The firm recently reported a robust Q4 2024, showcasing an adjusted net income of $2.22 per share, which beat analyst expectations. Nonetheless, the company’s stock fell by 2.7% on February 4, following the announcement that assets under management (AUM) increased 15% to $751 billion, which fell short of estimates. Additionally, the company highlighted an unspent capital reserve of $61 billion, signaling possible challenges in capital deployment despite originating $61 billion and deploying $63 billion during the quarter.
In comparison, rival Blackstone Inc. (BX) has not performed as well as APO, with its shares gaining only 17.4% year-to-date, but experiencing a decline of 12.3% overall this year.
Analysts maintain a positive outlook for Apollo Global Management, noting its outperformance over the past year. Among the 21 analysts covering the stock, there is a consensus rating of “Strong Buy,” and it is currently trading below the mean price target of $181.47.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
