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Jim Cramer on Blackstone: “Might Be a Good Play on a Rate Cut”

Blackstone Inc. (NYSE:BX) is one of the stocks Jim Cramer was recently focused on. Cramer noted that if the Fed keeps cutting rates, it could push the company’s earnings higher. He said:

“Next up, how about the daily chart of Blackstone, which has always been one of my favorites, and I pounded the table on it for, I don’t know, probably the last hundred points. Lang (Bob Lang) points out that the stock’s had a similar move to Carlyle with a powerful rally over the course of the summer, although the stock’s now pulled back hard over the past couple weeks. When you look at the moving average convergence divergence line… we call that the MACD line, down at the bottom here, it does look weak…. That’s not so great. But Lang says that’s because the stock got overbought and gradually burned off that condition over time. Still, the MACD line, to me it says sell. On the other hand, though, Lang notes that Blackstone’s had good volume action of late, rallying on strong volume and pulling back on weaker volume…

This company’s got heavy exposure to real estate. Blackstone real estate is an enormous business. So, if the Fed keeps cutting rates, that’s likely to push earnings higher. Might be a good play on a rate cut. Right now, it’s a $170 stock. Lang thinks it can rally to $200 over the next few months… This is when they had a problem with their real estate division, and they came on air and said that… not to worry about it, but they didn’t say it in a flippant way, and they were dead right. It was a terrific opportunity to buy.”

Blackstone Inc. (NYSE:BX) is an alternative asset manager investing across private equity, real estate, credit, hedge fund solutions, and secondary funds. Its strategies range from buyouts and growth equity to special situations and opportunistic real estate.

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READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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