Is BlackRock a Good Investment?

OVERVIEW

BlackRock Incorporation is a company based in the United States. The company specializes in offering asset management for both individual and commercial enterprises. The company does everything from creating and managing ETFs, analyze different investment opportunities, analyze global risks, and many other investment tools for its customers. The company was founded in 1988.

Why You Should?

  1. BlackRock will see higher demand for its investment products as a COVID vaccine is developed and administered to the public. This will benefit global economies all over the world, which is why BlackRock will see higher demand from both individual and commercial/enterprise customers.
  2. BlackRock will benefit from a strong global economy, as investors continue to put more money into the financial markets. BlackRock had to deal with a weaker economy before this pandemic occurred due to geopolitics. Once these conditions pass, BlackRock will benefit and its investor base will be benefited as well.
  3. The rising stock market will also benefit BlackRock as investors look for guidance on how to invest in different financial markets. Higher fees and commissions will also benefit the company’s top and bottom line due to the rising stock market and other financial markets.
  4. BlackRock has seen rising revenues and profits over the past couple of years due to the reasons mentioned above. These rising metrics will help the company grow in the future. This will benefit both the company and its investors. In the financial year of 2019, the company reported revenues of around 14.54 billion and profits of around 4.48 billion. Both of these metrics are higher than what the company reported in the financial year of 2018 when they had revenues of around 14.2 billion and profits of around 4.3 billion.

Why You Should Not?

  1. The COVID-19 Pandemic has reduced some of the demand for a variety of BlackRock. This is due to the economic recession that many countries are facing due to the impacts of the COVID-19 Pandemic. These impacts will look to be only short to mid-term.
  2. BlackRock faces tough competition from other investment tools, like Robinhood. They also face competition from other global banking companies like Goldman Sachs, Bank of America, UBS, and many others like them. This competition might hurt BlackRock in the future.
  3. Progressive Democratic policy might also hurt BlackRock in the future. Higher taxes and other regulations which make it more expensive and/or harder to invest. These taxes will hurt the top and bottom lines of BlackRock and many other investment banks.

MY OPINION

In my opinion, I think that Black Rock is a decent long term investment due to promising vaccine developments, a return of a strong global economy, a rising stock market, and rising revenues and profits. However, impacts from the COVID-19 Pandemic, tough competition, and progressive democratic policy might hurt the company in the future.

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Aaditya Patel

Aaditya Patel

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.