Is Apollo Global Management Stock Outperforming the Nasdaq?

With a market cap of $84.4 billion, New York-based Apollo Global Management, Inc. (APO) is a leading global alternative asset manager and private equity firm. The firm specializes in credit, private equity, real estate, infrastructure, and secondary, serving institutional and individual investors worldwide.

Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Apollo Global Management fits this criterion perfectly. With a diverse investment strategy spanning traditional buyouts, distressed assets, credit markets, and sustainable industries, Apollo operates across North America, Europe, Asia, and Africa.

However, the asset manager has fallen nearly 22% from its 52-week high of $189.49. Apollo Global Management shares have declined 15.4% over the past three months, lagging behind the broader Nasdaq Composite's ($NASX) 8.8% decline during the same period.

Longer term, APO stock has dipped 10.5% on a YTD basis, underperforming NASX's 5.4% decrease over the same period. Nevertheless, Apollo Global Management has surged 30.4% over the past 52 weeks, outperforming NASX's 11.5% gain. 

Despite the recent downturn, APO has mostly traded above both its 50-day and 200-day moving averages since last year.

Despite reporting a strong Q4 2024 adjusted net income of $2.22 per share, beating the estimate, shares of Apollo Global Management fell 2.7% on Feb. 4 primarily because its assets under management (AUM) rose 15% to $751 billion but missed the estimate. Additionally, the company reported a large unspent capital reserve of $61 billion, signaling potential deployment challenges even as it originated $61 billion and deployed $63 billion in the quarter.

However, in contrast, rival Blackstone Inc. (BX) has underperformed APO, gaining 17.4% on a YTD basis, and Blackstone saw a decline of 12.3% on a YTD basis. 

Due to APO's outperformance over the past year, analysts remain bullish about its prospects. Among the 21 analysts covering the stock, there is a consensus rating of “Strong Buy,” and it is currently trading below the mean price target of $181.47.