Is Blackstone's (BX) Bigger Dropbox Bet a Hint at Its Evolving Credit Strategy?

Simply Wall St
  • Blackstone Inc. recently expanded its private credit facility for Dropbox Inc. to US$2.7 billion, nine months after their initial agreement, while Dropbox increased its leverage by US$700 million and approved a new US$1.5 billion stock buyback plan.
  • This financing expansion reflects the growing role of private credit in technology sector funding and highlights Blackstone’s continued engagement with high-profile partners.
  • We'll explore how Blackstone's deeper involvement in private credit, highlighted by the Dropbox financing, shapes its broader investment outlook.

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Blackstone Investment Narrative Recap

Shareholders in Blackstone need to believe in the company's ability to capitalize on opportunities in private credit, real estate, and private equity markets, especially as private credit continues expanding in relevance. The recent Dropbox facility expansion confirms Blackstone’s commitment to private credit, but it does not have a material impact on near-term catalysts like continued asset growth or immediate risks such as market volatility and delays in investment deployment.

Among recent announcements, Blackstone’s Q2 2025 earnings report stands out, showing revenues of US$3.71 billion and a net income of US$764 million. This performance is meaningful as it demonstrates the company’s capacity to generate earnings growth amid market uncertainties, a key catalyst often watched alongside trends like its engagement in private credit.

By contrast, investors should be aware that market volatility and geopolitical risks could unexpectedly delay investment deployment…

Read the full narrative on Blackstone (it's free!)

Blackstone's narrative projects $21.5 billion revenue and $10.5 billion earnings by 2028. This requires 16.7% yearly revenue growth and a $7.6 billion earnings increase from $2.9 billion today.

Uncover how Blackstone's forecasts yield a $181.68 fair value, in line with its current price.

Exploring Other Perspectives

BX Community Fair Values as at Sep 2025

Pessimistic analysts were expecting Blackstone’s revenues to climb to US$19.2 billion by 2028 but also flagged risks like potential operational inefficiencies in fast-growing sectors. As an investor, it's useful to explore how sharply revenue and earnings assumptions might shift in light of recent private credit moves and realize opinions can differ widely as new data emerges.

Explore 7 other fair value estimates on Blackstone - why the stock might be worth less than half the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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