Blackstone maintains buy rating with strong Q1 inflows, earnings growth, and AI expansion plans.

Blackstone retains a buy rating as its fundamentals remain strong despite recent concerns in private credit and stock underperformance since January. The company saw inflows rise to $68.5 billion in Q1, with a 22% year-over-year increase in Credit & Insurance inflows, and holds $213.3 billion in dry powder, positioning it well for future opportunities. Fee-related earnings increased 23% to $1.55 billion, distributable EPS rose 25% to $1.36, and operating expenses were controlled. Blackstone is also aggressively expanding into AI with a $160 billion data center pipeline and the launch of Blackstone N1, boosting its long-term growth prospects.