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Blackrock CEO Explains Why He's Still Bullish on the Market

Daniel Pronk•Jul 18, 2026

Summary

Daniel provides a comprehensive thesis on why the artificial intelligence revolution is still in its early stages, despite recent market volatility. Daniel argues that the massive capital expenditure by 'hyperscalers' is a necessary investment to meet a demand for compute that is growing faster than supply. Daniel states that the market's fear regarding the ROI of AI spending is misplaced, especially as companies like BlackRock and Mercado Libre are already reporting record margins and massive productivity gains from internal AI integration.

Daniel highlights the following key points and stocks:

AMAZON (AMZN): Daniel argues that Amazon's AWS business model remains a crown jewel because it is seeing unprecedented demand that it currently cannot satisfy due to capacity constraints. Daniel states that despite the capital-intensive nature of the buildout, the long-term cash flows and high returns on invested capital make Amazon a top pick. Daniel expects Amazon to report fantastic earnings that will dispel current market fears.
META (META): Daniel emphasizes that Meta is utilizing AI internally to transform its recommendation systems, leading to material improvements in business efficiency. Daniel argues that as the cost of compute decreases, Meta will see an even higher return on investment from its AI initiatives. Daniel maintains a high level of confidence in his Meta position, viewing the stock as a beneficiary of the infrastructure layer of AI.
BROOKFIELD ASSET MANAGEMENT (BAM): Daniel states that he is invested in this company because it directly addresses the energy infrastructure bottleneck in North America and Europe. Daniel argues that the U.S. must drastically increase its power capacity to compete with China, which is currently building energy infrastructure at a much faster rate. Daniel believes that companies providing energy for data centers will see massive investment cycles lasting well into the 2030s.
BLACKROCK (BLK): Daniel uses BlackRock as a case study for AI-driven margin expansion, noting their operating margins hit a record 45.9% recently. Daniel states that the firm was able to grow assets under management by $1 trillion without increasing headcount, thanks to AI leveraging human capital. Daniel argues that this trend of doing 'more with less' will eventually spread to small and medium-sized businesses as AI costs fall.

Mentioned Stocks

AMZN
Sentiment: BUYAction: RECOMMENDED

Reasoning: Daniel argues that AWS is seeing more demand than it can capitalize on and that the current market skepticism regarding its capital-intensive model is unjustified. Daniel states that Amazon has a long track record of operating this business profitably and expects a fantastic earnings report to dispel market fear. Daniel views every dip in the stock as a buying opportunity and confirms he holds a position.

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META
Sentiment: BUYAction: RECOMMENDED

Reasoning: Daniel states that Meta is a major beneficiary of cheaper AI as it uses the technology in-house to improve its recommendation systems. Daniel argues that as AI becomes more affordable, Meta's return on investment will increase, leading to further margin expansion. Daniel expresses strong confidence in his Meta position heading into earnings season.

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BAM
Sentiment: BUYAction: RECOMMENDED

Reasoning: Daniel notes that he is invested in Brookfield Asset Management because they are a leading asset manager in the global energy and infrastructure buildout. Daniel argues that the massive demand for AI power will create energy scarcity, making energy infrastructure a critical investment theme through the 2030s. Daniel views the company as a key play for building the power capacity needed to keep the U.S. competitive with China.

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BLK
Sentiment: BUYAction: RECOMMENDED

Reasoning: Daniel states that BlackRock is demonstrating the bull case for AI through its own financial performance, achieving record operating margins of nearly 46%. Daniel argues that BlackRock's ability to increase assets under management by $1 trillion without growing headcount is a direct result of leveraging technology. Daniel remains bullish on the company as it continues to drive growth in private markets and utilize AI for efficiency.

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