Well, according to reports, it looks like Blackrocks stoned little brother in the private equity space, Blackstone Inc. is set to drop a casual $13.5 billion to get its hands in the AI cookie jar. 

(Source: Giphy) 

The target? AirTunk, an Aussi data center darling and tech powerhouse that has been expanding faster than my waistline during quarantine. With 11 data centers across the Asia-Pacific region, AirTrunk is cashin’ checks and breakin’ necks as their cloud computing and AI infrastructure are heating up hotter than Taylor Swift's latest album. 

(Source: Reuters) 

Which of course makes sense, considering the demand for digital infrastructure is currently higher than a friggin kite - but now, Blackstone (the private equity juggernaut) wants a piece of that cherry pie action. 

Interesting, more details please… 

As of right now, the deal includes a joint acquisition between Blackstone and the Canada Pension Plan Investment Board for a hefty price tag of $13 billion, including the debt.

 

(Source: Financial Times) 

For context, that’s more than the GDP of some small countries, but hey, in the world of private equity cash is king baby. This deal would pretty much become a massive payday for Macquarie and PSP Investments who currently hold 88% of AirTunk, while also going down in history as one of the largest digital infrastructure “Hoedowns” of the year. 

But still, why the sudden move by Blackstone, you ask?

Well, simply put, the acquisition of AirTunk fits perfectly into Blackstone’s broader strategy. 

(Source: Giphy) 

It’s not just about buying another asset; it’s about securing a strong position in a rapidly growing market. With AirTrunk’s rapid growth and expansion in high-demand markets like Japan, this deal is as much about future potential as it is about present value, especially as AI giants like Nvidia and Taiwan Semiconductors continue to innovate the AI landscape to unseen levels. 

(Source: Light Reading) 

Which is what we are all expecting right? Right. You see, the AI storm is continuing to brew, and Blackstone knows that its next big winner will be injecting itself in the middle of the chaos, hence getting into bed with AirTunk. 

Weirdly enough though, the news of the deal getting closer to finalization hasn’t sparked any wild reaction in Blackstones stock yet, as it’s currently dipping -1.89% for the day. However, despite the small blip, Blackstones stock is still riding high with an 8.44% year-to-date climb - adding to its +176.16% ascent over the past five years. 

On the other hand though, Blackstone’s recent earnings are also telling as to why this AirTunk deal is a massive step in the right direction. For instance, Blackstones recent report missed  EPS estimates by -2.24% and revenue by -1.71%. Additionally, Blackstones year-over-year results definitely add insult to injury as their revenue, net income, and net profit margin have taken dives of -2.56%, -26.09%, and -24.13% respectively. Ooof…

(Source: Yahoo Finance) 

So given all of this, what's the main takeaway here? Well, Blackstone is clearly looking to get hot and heavy in the AI space, as the new digital infrastructure will help them immensely on the internal side, and even on the external side with future analysis of deals. 

Which is why analysts, for the most part, are cautiously optimistic. For example, seven analysts have given Blackstone a “buy” rating, with the highest price target sitting at $164, promising a potential 19.24% upside. Meanwhile, ten analysts are playing it safe with a “hold” rating, or as we like to call it, “sit on your hands and wait.” 

(Source: TipRanks) 

In the end, as Blackstone finalizes this mega-deal, the financial world is watching closely. And while the deal isn’t “inked” and “signed” yet… the AirTunk buyout, for Blackstone, is a chance to strengthen its private equity business and tap into the booming tech sector. 

(Source: Giphy) 

For investors? Well, it’s potentially a goldmine in the making (or atleast a silver one). Especially as data centers continue to become the backbone of the digital (and AI) transformation. 

So with that said, you know the drill. Keep an eye on Blackstone Inc’s. Stock as the news continues to develop. Because as we all know, acquisitions are catalyst events, and from the looks of it, the news hasn’t settled into the stock price as of now. Meaning, there’s a window of opportunity before “sh*t” gets real in the price action. 

(Source: Giphy) 

But even still, regardless of what happens, why stress you’re investing skills trying to execute the perfect buy on Blackstone when the last four of our Stocks.News alerts all exploded to peak moves of +110%, +185%, +110.10%, and +300%... in LESS than 48 hours?! Incredible right? Our premium members were absolutely eating last week, and with the market closed for Labor Day yesterday, and volatility coming out with a bang this week, our next alert on Wednesday, September 4th is set to be even more explosive. 

Could it be another +100% or +300% move in the making? There’s only one way to find out. Meaning, if you’re not a premium member, then what the heck are you doing? Hurry and upgrade immediately to make sure you get in on next week's action!

In the meantime… stay safe and stay frosty, friends! Until next time…

Stocks.News does not hold positions in any company mentioned in the article.