Latest news with #ApolloGlobalManagement
Yahoo
3 hours ago
- Business
- Yahoo
What You Need to Know Ahead of Apollo Global Management's Earnings Release
New York-based Apollo Global Management, Inc. (APO) is a private equity firm specializing in investments in credit, private equity, infrastructure, secondaries and real estate markets. Valued at $86.9 billion by market cap, the company focuses on investing in yield, hybrid, and equity markets to generate retirement and investment incomes. The private equity giant is expected to announce its fiscal second-quarter earnings for 2025 before the market opens on Tuesday, Aug. 5. Ahead of the event, analysts expect APO to report a profit of $1.75 per share on a diluted basis, up 22.4% from $1.43 per share in the year-ago quarter. The company missed the consensus estimates in three of the last four quarters while beating the forecast on another occasion. More News from Barchart It's Never 'Happened in the History of Tech to Any Company Before': OpenAI's Sam Altman Says ChatGPT is Growing at an Unprecedented Rate Ditch 'Basic' Nvidia and Buy This 'Unique' Chip Stock Instead Tesla Earnings, Powell Speech and Other Can't Miss Items this Week Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. For the full year, analysts expect APO to report EPS of $7.20, up 9.3% from $6.59 in fiscal 2024. Its EPS is expected to rise 20.8% year-over-year to $8.70 in fiscal 2026. APO stock has outperformed the S&P 500 Index's ($SPX) 13.6% gains over the past 52 weeks, with shares up 26.3% during this period. Similarly, it outperformed the Financial Select Sector SPDR Fund's (XLF) 21.4% gains over the same time frame. APO is partnering with major banks, including JPMorgan Chase & Co. (JPM) and The Goldman Sachs Group, Inc. (GS), to increase liquidity in the private credit market. This collaboration aims to actively syndicate and trade investment-grade private debt, allowing for faster origination of larger loans. By enhancing liquidity and accessibility, APO is poised to attract both institutional and individual investors, driving growth in the private credit market. This initiative is part of APO's strategy to expand its credit trading footprint and solidify its position as a key player in shaping the future of private credit trading. On May 2, APO shares closed down more than 1% after the company reported its Q1 results. Its revenue stood at $5.5 billion, down 21.2% year-over-year. The company's adjusted EPS increased 5.8% year-over-year to $1.82. Analysts' consensus opinion on APO stock is bullish, with an overall 'Strong Buy' rating. Out of 21 analysts covering the stock, 16 advise a 'Strong Buy' rating, one suggests a 'Moderate Buy,' and four give a 'Hold.' APO's average analyst price target is $164.63, indicating a potential upside of 8.3% from the current levels. On the date of publication, Neha Panjwani 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. This article was originally published on
Mint
5 hours ago
- Business
- Mint
Former Google CEO Eric Schmidt explains why the AI wave is no bubble, but a new industrial shift
Former Google CEO Eric Schmidt does not believe that the AI industry is in the midst of a dot-com-style bubble. In fact, he argues that the current wave marks the beginning of a new industrial era. Since the public rollout of ChatGPT in late 2022, huge investments have been made in AI, with big tech companies rallying behind the technology and portraying it as the next big thing. However, critics of AI have drawn parallels with the dot-com bubble of the late 1990s, and some, such as Torsten Slok, Chief Economist at Apollo Global Management, have warned that today's top AI stocks are even more overvalued than those in the dot-com era. Apart from Slok, Alibaba Group Chair Joe Tsai has also warned that US AI stocks are in a bubble. Amid rising scepticism around AI, Schmidt — who is also an investor in leading AI companies such as Anthropic and Perplexity — highlights the increasing number of large data centres powered by Nvidia's chips to demonstrate that the AI industry is not experiencing a bubble. Speaking at the RAISE summit in Paris, Schmidt said, "So, if if you if you ask most of the executives in the industry, they will say the following. They'll say that we're in a period of overbuilding. They'll say that there will be over capacity in two or three years. And when you ask them, they'll say, "But I'll be fine and the other guys are going to lose all their money." So that's a classic bubble, right?" 'I personally don't know. Um, I've looked at this pretty hard because you have these massive data centers and Nvidia is quite happy to sell them all the chips, you know, and uh the real estate developers are used to borrowing money to build these things. I've never seen a situation where hardware capacity was not taken up by software.' 'So I think it's it's unlikely based on my experience that this is a bubble. It's much more likely that you're seeing an whole new industrial structure.' Schmidt further noted.
Yahoo
6 hours ago
- Business
- Yahoo
AI mania is worse than 1999's tech bubble, Apollo's top economist warns
A top Wall Street economist is sounding the alarm on sky-high valuations in AI stocks — and drawing comparisons to the tech bubble of the late 1990s. "Yes, AI will do incredible things for all of us," Torsten Sløk, chief economist at Apollo Global Management, said on Yahoo Finance's Opening Bid. "But does that mean I should be buying tech companies at any valuation?" (Disclosure: Yahoo Finance is owned by Apollo Global Management.) According to Sløk, the answer is increasingly no. In a research note to clients this week, he pointed to internal data showing the price-to-earnings ratios (P/E) of the 10 largest companies in the S&P 500 (^GSPC) — many of them AI stock picks like Meta (META) and Nvidia (NVDA) — have eclipsed P/E levels seen at the height of the dot-com bubble in 1999. That signals a dangerous concentration of investor exposure in just a handful of tech giants, Sløk argued. "Almost 40% of the S&P 500 is made up by the 10 largest companies," he said. "So if I take $100 as an investor and buy the S&P 500, I think I have exposure to 500 different stocks, but I'm really just betting on the Nvidia and the AI story continuing." In his note, Sløk noted that the current valuations in megacap tech stocks, and the index as a whole, may not be sustainable. His concerns echo a growing unease on Wall Street over how much of the recent stock market rally is driven by AI euphoria and momentum trades. BTIG analysts flagged similar warning signs in a note this week, describing market sentiment as "frothy" and raising the possibility of a near-term pullback in high-flying AI names. Their focus was on the BUZZ NextGen AI Sentiment Index, a benchmark of AI-related stocks popular with retail investors. The index is up 45% over the past 16 weeks and trading 29% above its 200-day moving average. According to BTIG, both are the highest since early 2021, when speculative tech stocks peaked. "Can it get more so like it did in '20-'21? Of course," BTIG analyst Jonathan Krinsky wrote. "But tactically, this feels a bit extreme to us." Krinsky also warned that the index's top holdings, including Rocket Lab (RKLB), Coinbase (COIN), and Unity Software (U), are showing "vertical" chart patterns and are increasingly vulnerable to "short-term shakeouts." The note suggests that investors consider rotating into more defensive sectors, such as utilities or even Chinese tech, which has been consolidating for months. Together, the Apollo and BTIG notes point to a growing split in the market between long-term optimism around AI's potential and near-term concerns that valuations and concentration have gone too far, too fast. Francisco Velasquez is a Reporter at Yahoo Finance. He can be reached on LinkedIn and X, or via email at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
11 hours ago
- Business
- Bloomberg
Goldman Hires Apollo Real Estate Executive for Australia Role
Goldman Sachs Group Inc. has hired Apollo Global Management Inc. executive Samuel Green as managing director for its Australian real estate investing team, according to a memo seen by Bloomberg News. Green will be based in Sydney and lead the strategic direction and growth of Goldman's equity and credit real estate investing in the country, according to the memo. A spokesperson for Goldman Sachs confirmed the contents of the document.
Yahoo
11 hours ago
- Business
- Yahoo
Samuel Green rejoins Goldman Sachs to lead real estate investing team in Sydney
(Reuters) -Goldman Sachs has appointed Samuel Green as managing director of its Sydney-based real estate investing team, according to an internal memo seen by Reuters on Monday. Green, who previously worked in the firm's investment banking division earlier in his career, will lead the strategic direction and growth of its Australia equity and credit investing platform and strengthen engagement with an expanding client base in the region, the memo said He brings extensive experience in alternative investments across private equity, hybrid and credit in real assets, it added. Most recently, Green was with Apollo Global Management, where he focused on commercial real estate in Australia and New Zealand. Before that, he held a role at Macquarie Principal Finance. A Goldman Sachs spokesperson has confirmed the content of the memo to Reuters.
