Blackstone Soars 2.3% on Data Center Momentum and Strategic Shifts

Summary
• Blackstone’s stock surges 2.3% to $164.54, outpacing the S&P 500’s 17.9% 2025 return.
• BREIT’s 8.1% annual return in 2025, driven by data center expansion, fuels investor optimism.
• Options activity intensifies, with high-volume call options at $162.5 and $165 strikes.

Blackstone’s intraday rally reflects a confluence of strategic data center growth, improved redemption policies, and institutional buying. The stock’s 2.3% gain—its strongest in months—highlights renewed confidence in its real estate and private market platforms. With turnover at 2.34 million shares and a 52-week high of $190.08 still in reach, the move underscores a pivotal shift in market sentiment.

Data Center Expansion and Redemption Resumption Drive Blackstone’s Rally
Blackstone’s 2.3% surge is anchored by its data center platform QTS, which now constitutes 20% of BREIT’s portfolio. The firm’s $3.7 billion in 2025 data center deployments—81% higher than 2024—has positioned it to capitalize on AI infrastructure demand. Concurrently, the resumption of full redemptions since early 2024 has stabilized investor sentiment. Analysts at Jefferies and TD Cowen, despite recent price target cuts, maintain 'buy' ratings, signaling conviction in Blackstone’s long-term value creation. Institutional buyers, including Brighton Jones LLC and Gateway Investment Advisers, have also added to positions, reinforcing the bullish narrative.

Diversified REITs Lag as Blackstone’s Data-Driven Strategy Outperforms
While the Diversified REITs sector remains under pressure—exemplified by Prologis (PLD)’s modest 1.09% intraday gain—Blackstone’s focus on data centers and Sun Belt markets has created a divergence. The sector’s 3.2% 2025 return pales against Blackstone’s 8.1% annualized return for BREIT. This gap reflects the firm’s strategic alignment with structural trends in AI and hyperscale cloud demand, contrasting with traditional REITs’ exposure to declining office and retail sectors.

Options and ETFs Highlight Bullish Momentum Amid Technical Strength
• MACD: 1.879 (above signal line 1.853), indicating bullish momentum.
• RSI: 58.46 (neutral, suggesting potential for further gains).
• 200-day MA: $153.96 (below current price), signaling a breakout.
• Bollinger Bands: Price at $164.54, above the upper band ($162.30), suggesting overbought conditions.

Blackstone’s technicals point to a continuation of its rally, with key support at $151.32 and resistance at $165.14. The 52-week high of $190.08 remains a long-term target. Options traders are eyeing the BX20260123C162.5 and BX20260123C165 contracts for leveraged exposure.

BX20260123C162.5 (Call, $162.5 strike, 2026-01-23 expiration):
• IV: 28.47% (moderate volatility).
• Leverage Ratio: 42.90% (high).
• Delta: 0.619 (moderate sensitivity).
• Theta: -0.675 (rapid time decay).
• Gamma: 0.055 (strong price sensitivity).
• Turnover: 69,693 (high liquidity).
Payoff at 5% upside ($172.77): $10.27 per contract. This option balances leverage and liquidity, ideal for a short-term bullish bet.

BX20260123C165 (Call, $165 strike, 2026-01-23 expiration):
• IV: 24.95% (reasonable volatility).
• Leverage Ratio: 76.06% (very high).
• Delta: 0.471 (moderate sensitivity).
• Theta: -0.543 (moderate time decay).
• Gamma: 0.066 (strong price sensitivity).
• Turnover: 38,610 (high liquidity).
Payoff at 5% upside ($172.77): $7.77 per contract. This contract offers aggressive leverage for a controlled-risk trade.

Action: Aggressive bulls may consider BX20260123C162.5 into a breakout above $165.14, while BX20260123C165 suits those targeting a 52-week high retest.

Backtest Blackstone Stock Performance
The backtest of BX's performance after a 2% intraday increase from 2022 to the present shows favorable results. The 3-Day win rate is 52.86%, the 10-Day win rate is 53.45%, and the 30-Day win rate is 53.06%, indicating a higher probability of positive returns in the short term. The maximum return during the backtest was 3.02%, which occurred on day 59, suggesting that BX can experience significant gains even after the initial 2% surge.

Position for Blackstone’s Data-Driven Growth: Key Levels and Options to Watch
Blackstone’s rally is underpinned by its data center strategy and institutional buying, with technicals and options activity aligning for a continuation. Watch the $165.14 intraday high as a critical threshold; a break above could trigger a retest of $190.08. For context, sector leader Prologis (PLD) has gained 1.09% today, underscoring the sector’s uneven recovery. Investors should prioritize BX20260123C162.5 for leveraged exposure and monitor the 200-day MA at $153.96 as a support level. Act now: Secure call options ahead of a potential breakout, and brace for volatility as the 52-week high looms.