Apollo Global Management (APO) CEO Marc Rowan shared a different view on tariffs compared to Warren Buffett. In an interview with Yahoo Finance at the Milken Institute Global Conference, Rowan said that he doesn’t agree with Buffett’s description of tariffs as a “weapon,” which Buffett used while arguing for free trade at Berkshire Hathaway’s (BRK.B) annual meeting. Rowan believes that tariffs are simply a tool, not necessarily political, and explained that while some tariffs are smart and others are not, they can still cause abrupt adjustments in the market.
Apollo’s latest earnings reflected the challenges in today’s uncertain environment. Total fee-related revenue rose by about 17% from a year ago to $978 million, and adjusted earnings grew by 8% to $1.85 per share. However, spread income from managing insurance assets came in slightly below estimates at $804 million, and performance-based profits also fell short at $14 million due to tough market conditions that made it harder to sell investments for profits. Despite this, Apollo invested $25 billion after recent market disruptions, mainly into public debt markets.
Looking at the bigger picture, CEO Marc Rowan said that tariffs are not a major issue for Apollo’s global portfolio, which is not heavily tied to just the U.S. or Europe. However, he stressed that uncertainty is a bigger problem. When businesses don’t know what rules or policies to expect, they tend to hold back on investing, hiring, and making key moves, which slows down growth and creates challenges across the market.
Is APO Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on APO stock based on 11 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average APO price target of $159.62 per share implies 19% upside potential.
