Blackstone Inc. (BX): A Bull Case Theory

We came across a bullish thesis on Blackstone Inc. on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on BX. Blackstone Inc.'s share was trading at $129.69 as of February 6th. BX’s trailing and forward P/E were 33.51 and 20.41 respectively according to Yahoo Finance.

Blackstone Inc. is an alternative asset management firm specializing in private equity, real estate, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. BX presents a compelling long-term bullish opportunity for investors willing to look past short-term noise. The company recently experienced a 19% pullback in its share price to around $131, largely driven by overblown headlines regarding a potential ban on institutional purchases of single-family homes.

In reality, Blackstone’s single-family holdings represent only 0.5% of total assets, and the firm has been a net seller in this segment for over a decade. This overreaction has created a rare entry point, with implied volatility allowing institutional traders to collect significant premiums on deep out-of-the-money options.

A notable trade highlights this bullish case: a major institutional investor sold 1,000 contracts of December 2028 $100 Puts for $14 each, reflecting confidence that Blackstone shares will remain well above $86 over the next three years. Beyond this tactical setup, Blackstone is strategically positioned for substantial growth.

The firm sits on $200 billion in dry powder, poised to capitalize on AI-driven infrastructure, data center expansion, and energy projects such as the Oracle Michigan buildout. Stabilizing interest rates and an expected rebound in deal activity support projections for record fee-related earnings by 2027. Meanwhile, the company’s dividend of $1.49 per quarter provides a 4.5% yield, creating a natural valuation floor and attracting income-focused investors.

With significant capital ready to deploy, a resilient business model, and a favorable macro tailwind, Blackstone’s current weakness is largely temporary. Over the medium to long term, the firm’s strategic initiatives and disciplined investment approach suggest substantial upside potential, making it an attractive entry point for bullish investors seeking both income and growth exposure in alternative asset management.

Previously, we covered a bullish thesis on BlackRock, Inc. (BLK) by Kroker Equity Research in February 2025, which highlighted the company’s leadership in asset management, strong net inflows, expansion into private markets, and the high-margin Aladdin® platform driving recurring revenue. BLK’s stock price has appreciated by approximately 6.45% since our coverage. OppCost shares a similar bullish perspective but emphasizes Blackstone Inc.’s (BX) growth from strategic capital deployment, AI infrastructure investments, and opportunities created by market overreactions.

Blackstone Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 80 hedge fund portfolios held BX at the end of the third quarter which was 72 in the previous quarter. While we acknowledge the risk and potential of BX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.