Apollo Global Management , Inc . ( APO ): A Bull Case Theory

insidermonkey.com · Feb 23, 2026 · Collected from GDELT

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Published on February 22, 2026 at 6:56 pm by Ricardo Pillai in News, Stock Analysis We came across a bullish thesis on Apollo Global Management, Inc. on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on APO. Apollo Global Management, Inc.’s share was trading at $133.03 as of February 6th. APO’s trailing and forward P/E were 19.39 and 14.47 respectively according to Yahoo Finance. Apollo Global Management, Inc. is a private equity firm specializing in investments in credit, private equity, infrastructure, secondaries and real estate markets. APO is currently experiencing a notable market reset, with its stock cooling from January highs near $163 to around $126 as of February 5, 2026, amid pre-Q4 earnings jitters. In this environment, a significant institutional trade was executed, selling 2,165 May 15, 2026, $105 puts for $3.30 each, collecting $714,450 in premiums. This trade reflects a strong conviction that Apollo’s stock is undervalued, offering a 16.6% margin of safety with a break-even of $101.70. The company’s core strength remains its origination engine, targeting $275 billion in annual origination volume for 2026. Despite market concerns over near-term volatility in its retirement services segment, Apollo is pivoting toward high-growth areas, exemplified by a $3.5 billion capital solution to support AI infrastructure for xAI. This demonstrates the firm’s evolution from traditional distressed debt into a lender for the new economy, with fee-related earnings poised for significant growth as these infrastructure deals close. Valuation further reinforces the opportunity, as $APO trades at a forward P/E of roughly 14x estimated 2026 earnings, well below peers like Blackstone and KKR, despite a projected 25% annual earnings growth through 2027. The May expiration on the sold puts captures two earnings cycles, allowing time for Apollo to deliver on its high-profile originations while enabling the trade to benefit from time decay. Overall, the position highlights the undervaluation of Apollo’s diversified alternative asset management platform, the growth potential of its origination and AI infrastructure initiatives, and the asymmetric risk/reward available to investors willing to capitalize on market fear. Previously, we covered a bullish thesis on BlackRock, Inc. (BLK) by Kroker Equity Research in February 2025, which highlighted the company’s diversified asset management platform, record net inflows, Aladdin® technology, and shareholder returns through dividends and buybacks. BLK’s stock price has appreciated by approximately 6.5% since our coverage. OppCost shares a similar perspective but emphasizes Apollo Global Management’s (APO) origination growth, AI infrastructure lending, and undervaluation versus peers. Apollo Global Management, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 80 hedge fund portfolios held APO at the end of the third quarter which was 86 in the previous quarter. While we acknowledge the risk and potential of APO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APO and that has 10,000% upside potential, check out our report about this cheapest AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW Disclosure: None. NYSE:APOYahoo FinanceDaily Newsletter