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Is It Too Late to Buy Apollo Global Management Stock?

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Written by Timothy Sykes
Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs

Apollo Global Management Inc. is experiencing significant upward momentum, driven by key positive developments. Recent headlines indicated robust earnings and strategic acquisitions that have investor confidence soaring. Moreover, the company’s aggressive expansion plans into new markets are also catching attention. Consequently, on Tuesday, Apollo Global Management Inc.’s stocks are trading up by 4.74 percent.

  • Apollo’s collaboration with Citi and Mubadala involving a $25 billion private credit, direct lending program is set to expand their lending prowess.
  • Wolfe Research’s rating of Apollo Global as “Outperform” with a price target of $139 highlights its growth potential.
  • Apollo’s substantial proposed investment in Intel reflects its confidence in the technology sector’s recovery.
  • Citigroup and Apollo form a strategic partnership to innovate in private credit and direct lending with a massive $25 billion fund.
  • Apollo’s financial affiliate Atlas SP Partners, with BNP Paribas’ $5 billion commitment, shows strong market collaboration.

Candlestick Chart

Live Update at 10:44:14 EST: On Tuesday, October 01, 2024 Apollo Global Management Inc. stock [NYSE: APO] is trending up by 4.74%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Overview of Apollo Global Management’s Recent Financials

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Apollo Global Management has had an eventful past quarter with remarkable highs. Their latest earnings report shows robust financial health, spearheaded by strategic investments and partnerships. Apollo’s collaboration with Citigroup aims to enhance private credit access, leveraging the expertise of both financial giants. This game-changer has the potential to reshape the North American market, opening new doors for corporate and sponsor clients.

Key ratios and financial reports indicate:
Their income statements reveal sturdy earnings with total revenue hitting around $32.64B. Even with a wild swing in its cash flow due to aggressive investments, the firm’s strong cash reserves of $17.98B show resilience. With a return on equity touching nearly 31% and a pretax profit margin of 20.7%, Apollo’s financial strength echoes confidence.

In the latest stock performance data for APO, one can see a constant climb in price, culminating with the stock closing at $130.825 on 01 Oct 2024. Intraday trends also indicate bullish sentiment, evidenced by high trading volumes and upward movement, signaling strong investor confidence.

Apollo’s EBIT margin stands at a solid 17.6%, which shows efficiency in its core operations. The firm’s Total Debt to Equity Ratio is 0.71, indicating sound leverage management, which is crucial for long-term stability. Despite a dip in the current ratio, the overall financial robustness of the balance sheet is evident.

As we examine financial reports more closely, we see Apollo making significant investments – $14.7B as reported in cash flow statements. Such substantial investments drive long-term growth, and with strategic moves like the proposed multibillion-dollar play in Intel, Apollo signifies its ambition for dominance in varied sectors.

How Current News is Impacting APO Stock

Major Partnerships with Citigroup:

Apollo and Citigroup’s strategic creation of a $25 billion private credit and direct lending program marks a significant expansion in their financial capabilities. This partnership is a powerful tool to seize opportunities in the North American market initially with plans for broader reach. This collaboration not only aims to service corporate and sponsor clients better but also intends to fortify Apollo’s standing in the robust financial market.

The $25B program, involving Mubadala Investment Company and Apollo’s Athene unit, showcases Apollo’s strong capital base and Citigroup’s banking range. Key to this partnership is the boost it provides to Apollo’s financial muscle and market presence, making its stock a viable choice for investors eyeing long-term gains.

Wolfe Research’s Rating:

Wolfe Research recently initiated coverage on Apollo Global with an ‘Outperform’ rating and a staggering price target of $139. The research firm emphasized Apollo’s discounted valuation compared to peers, despite the market volatility connected to interest rates. This rating captures the attractive risk-reward profile that Apollo presents and highlights several catalysts that could propel its stock upward in the near term.

Wolfe’s rating drives optimism in the market around Apollo’s stock, influencing buying patterns and propping up prices. The anticipation of positive catalysts adds an edge to investor sentiment, supporting the bullish trend in Apollo’s share price.

Proposed Investment in Intel:

Apollo’s decision to potentially invest in Intel aligns with its strategic maneuvering into lucrative sectors like technology. This proposed multibillion-dollar investment underscores Apollo’s confidence in Intel’s turnaround strategy, hinting at a strategic bet on technology’s future.

The intriguing part of this move is its timing, coinciding with Intel’s efforts to regain market leadership. Apollo’s investment represents a strong vote of confidence, not just in Intel but in its own capacity to spot and back winning turnarounds. This narrative can drive growth expectations, influencing stock prices positively.

Strategic Partnership with BNP Paribas:

Apollo’s affiliate, Atlas SP Partners, securing a $5 billion funding commitment from BNP Paribas signifies a well-thought-out strategy in finance and capital markets collaboration. This large-scale commitment marks a considerable increase in Apollo’s capabilities, propelling its stock due to the optimistic outlook from such a cohesive strategic effort.

This partnership leverages both entities’ strengths to maximize market opportunities, reaffirming Apollo’s reputation and driving favorable investor sentiment. It suggests a calculated expansion plan, expected to reflect positively in APO’s stock trajectory.

More Breaking News

Conclusion

Apollo Global Management is demonstrating its prowess through strategic partnerships and bold investments. Collaborations with Citigroup and the strategic financing from BNP Paribas, coupled with a potential game-changing investment in Intel, set the stage for Apollo’s robust market performance.

The Outperform rating by Wolfe Research further adds to this optimistic landscape. This is a compelling mix of market confidence, sound financial health, and strategic foresight, indicating that Apollo’s stock may very well be a sound bet for forward-thinking investors.

With such positive momentum, backed by formidable financial strategies and market collaborations, the question remains whether it is too late to buy into this growth story. However, the signals underpinning the current trends suggest there’s still room for significant upside. Keep a close watch as Apollo navigates further; it’s indeed an exciting time for those tracking APO’s market journey.

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”