They are losing assets under management. Not just AB but many firms over the last few years have less assets to manage. This company could also be losing assets from sovereign wealth funds as they sell assets to cover budget short fall from low energy prices.
but the drop from $ 800 billion all happened in 2008. At 12/31/07, AUM was $ 800.390 billion, and at 12/31/08 AUM had dropped to $ 461.951 billion, mostly due to the stock/bond market meltdowns. AB has pretty much kept its AUM in the $ 400 billion - $ 500 billion range ever since then.
So why now should the price fall apart? The AUM story is old news. Has anything happened more recently? Credit Suisse has a report out yesterday with no real discussion of AB, just a Neutral rating. a $ 27 target price and 7% expected yield for 2016. Is there anything else out there in the last day or 2?
AUM: Assets Under Management; AB used to have AUM of over $800 Billion about 10 years back when stock was around $80 per share. Now AB has AUM of around $475 Billion.
They get fees on amounts of AUM, so more AUM means more income for AB and shareholders.