Why Facebook's Falling Share Price Really Doesn't Matter
Mark Zuckerberg and Priscilla Chan: A Romantic Facebook TimelineIt was certainly nice that Blackstone (NYSE: BX) had a strong Q2 with net income jumping from $224 million last year to $774 million. The stock is up over 7% in the pre-market.
The Blackstone Group's June IPO was highly anticipated and was viewed as a proxy for the health and financial success of private equity firms. It bombed. Shares fell from $38 to under $23 in less than two months.
But, the second quarter is not the number that bears watching. It was undoubtedly a success, but it came ahead of the credit crisis that has sucked financing for big LBO and private equity deals out of the market. Analysts are worried that the disappearance of liquidity in that buyout market could hurt the results of large financial institutions like Goldman Sachs (NYSE: GS) and Citigroup (NYSE: C).
Based on early trading, Blackstone's shares may make it back to $28 today, but to move back toward $38, the firm will have to prove that it can turn in another big quarter in a very bad environment.
Douglas A. McIntyre is a partner at 24/7 Wall St.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
Reader Comments (Page 1 of 1)
8-15-2007 @ 11:12AM
surendra bhavanam said...
Hi
This is good news that blackstone is doing well. I like to bring to attention that blackstone is trying to invest in ushodaya enterprises which is a supporter of communists and Iran in INDIA. I request you to not to do that mistake as this gives an opinion to indian people that american companies are more concerned for their profits rather than for democracy. we request you to kindly reconsider this decision and be a supporter of democracy.