BlackRock’s Big Moment: CFRA’s Cathy Seifert Breaks Down What Investors Should Be Watching Ahead of Larry Fink’s Next Move

BlackRock (BLK) is heading into its third-quarter earnings report next week with a lot riding on CEO Larry Fink’s message — and CFRA Senior Vice President and Analyst Cathy Seifert says investors would be wise to listen closely. Speaking with AInvest’s Adam Shapiro on the Capital & Power Short podcast , Seifert outlined how the world’s largest asset manager is quietly transforming itself into a diversified powerhouse that’s no longer just about ETFs and index funds. For a company that manages more than $10 trillion in assets and sits at the intersection of global finance, technology, and geopolitics, her insights offer a rare look into the forces shaping its next chapter.

At its core, BlackRock manages money for institutions and individuals across every major asset class — from stocks and bonds to private credit, infrastructure, and alternative investments. But as Seifert notes, the firm is moving well beyond its traditional role. “BlackRock has this goal of expanding beyond just being a bread-and-butter asset manager,” she said, pointing to its Aladdin technology platform and growing presence in data and alternative assets. The firm’s acquisition of Preqin — a data provider for the private-markets industry — and rumored interest in large infrastructure and data-center deals underscore its intent to make 30% of its revenue come from tech, data, and alternative investments.

Those deals could soon include some eye-catching numbers. Reports suggest BlackRock may be eyeing Aligned Data Centers for roughly $40 billion and AES , the U.S. energy company, for nearly $38 billion. While Seifert declined to speculate on specific targets, she said moves of that scale would “definitely accelerate” BlackRock’s diversification goals. That’s a far cry from the days when its fortunes rose and fell almost entirely with the S&P 500.

Seifert also pushed back on recent claims that BlackRock’s prior quarterly “beat” was low quality — a view put forward by analysts at KBW. She argued that investors are missing the point if they’re only looking at accounting optics. “Growth is growth,” she emphasized. “If you’re getting growth because you’re bringing assets in the door, that’s certainly a higher-quality rate of growth than an asset manager whose AUM is growing only because you’ve got a market tailwind.” In other words, organic asset inflows — not market momentum — are the metric that matters most heading into this quarter.

That’s crucial because shares of BlackRock have rallied sharply this year — from about $770 in April to the $1,160 area — before cooling off in recent weeks. With the stock consolidating ahead of earnings, Seifert’s comments suggest that investors should zero in on whether Fink can sustain organic AUM growth as markets brace for potentially lower interest rates and renewed geopolitical uncertainty. She sees BlackRock uniquely positioned “right in the middle” between traditional active managers losing flows and alternative managers still struggling through a high-rate hangover.

On the topic of artificial intelligence — and whether a so-called “AI bubble” could threaten the firm’s data-center ambitions — Seifert struck a measured tone. “I think the AI story has got more room to run,” she said. Rather than a bubble, she sees AI as a “bifurcating factor” driving an arms race across the asset-management industry. For BlackRock, that means the key question isn’t whether AI is overhyped, but who is acquiring the capabilities to adapt to it.

When the conversation turned to crypto, Seifert again reminded listeners to stay realistic. While BlackRock’s spot Bitcoin ETF may hit $100 billion in assets this year, she doesn’t see crypto as a needle-mover for a firm of this size. “It’s more a function of remaining relevant,” she said, describing new ETF launches as part of maintaining a full product suite rather than a major strategic pivot.

As for risks, Seifert was blunt: “The biggest potential risk to the story is a broad-based global economic downturn.” BlackRock’s sheer scale means its results are tethered to global growth and capital markets. But she also flagged a subtler risk tied to its Global Infrastructure Partners unit — geopolitical exposure from cross-border investments that can be harder to hedge.

So what should investors listen for when Larry Fink takes the stage next week? Seifert highlighted three key themes: updates on the firm’s diversification strategy, evidence of top-line growth, and confirmation that earnings are being driven by organic asset inflows. Just as important, she said, will be Fink’s tone on the global economy: “He has a purview unmatched by most people and there’s a lot that he could share with us, particularly given all of the geopolitical uncertainty out there.”

Finally, Seifert weighed in on the chatter about Wall Street firms migrating to Texas. She noted that while many firms are shifting back-office operations to lower-cost states, the core executive teams tend to stay put. “It’s not surprising. I wouldn’t call it much ado about nothing, but it’s part of a bigger trend,” she said — a reminder that even in finance, geography follows the money.

For investors looking ahead to BlackRock’s earnings, Seifert’s analysis offers both a roadmap and a reality check. Whether the next move for BLK is another billion-dollar deal or simply stronger organic growth, this conversation is a must-listen. Hear the full interview with Cathy Seifert on Capital & Power Short — before the market finds out what Larry Fink has to say next week.