📊 Small-Cap Caution: Tariffs Bite as Biotech Bucks the Trend

Good Morning Investors,

Yesterday small caps stumbled as trade tensions resurfaced, dragging the Russell 2000 and S&P/TSX Venture slightly lower.

While headlines focused on rising tariffs and recession risk, biotech stocks quietly staged a comeback—offering a rare bright spot in an otherwise jittery market. Investors are grappling with mixed signals: a 41% import surge aimed at dodging duties, Trump touting tariff triumphs, and analysts like Mark Mobius reminding everyone that “cash is king.”

In this climate, resilience matters—and savvy investors are keeping their eyes on both the winners and the warning signs.

Matthias Schneider
Editor at Analytica Investor

↑ ↓ 1-day change
Market data: Yesterday’s market close

Small-cap stocks experienced a downward trend with the Russell 2000 dipping by 0.6% and the S&P/TSX Venture Composite Index marginally falling by 0.2%. Fears surrounding the ongoing volatility caused by tariffs and recession potential have been implicated in the decline.

Industries in the biotechnology, information technology and semiconductor sectors, however, presented a more optimistic picture. The NASDAQ Biotechnology index surged by 1.5%, accompanied by apreciable growth in the S&P 500 Information Technology (Sector) and Dow Jones U.S. Semiconductors Index, both increasing by 0.4% and 0.3%, respectively.

U.S. import surge data provided by the Schwab Network revealed a 41% increment in an attempt to pre-empt the tariffs. This follows ongoing tit-for-tat exchanges between the U.S. and China, with President Trump recently saying China is getting 'hammered' by tariffs as per a report on Bloomberg Markets and Finance. How this consequent global volatility will impact small-cap stocks remains uncertain, fueling a sense of caution among investors. Barrons advised staying cautiously optimistic for small-cap stocks, echoing the sentiment expressed by Mark Mobius on Bloomberg about cash being king in these tumultuous times.

In the midst of tariff-related turmoil, certain stocks have managed to turn the situation into an opportunity according to a Benzinga report. For an investor audience, it is advisable to remain cautious and vigilant in the market, keeping abreast of new developments. The current scenario underscores the importance of adaptability and the need for comprehensive understanding of market trends, particularly for investors active in the small-cap segment.

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📈 Biggest Gainers 

• FingerMotion, Inc. ($FNGR NASDAQ) - 26%:
  Market Cap: 128,567,700
  
  A mobile data specialist providing mobile payment solutions, telecommunications services, and big data insights for several industries in China.

• Orchestra BioMed Holdings, Inc. ($OBIO NASDAQ) - 17%: 
  Market Cap: 113,788,125
  
  It operates as a biomedical innovation firm, developing therapies for hypertension and artery disease, and minimally invasive surgical devices.
  
  The 17% rise in Orchestra BioMed Holdings, Inc.’s stock can be attributed to the recent PR releases announcing FDA approval to initiate a U.S. Coronary Pivotal Trial, their participation in upcoming institutional investor conferences, and the announcement of an AVIM Therapy-Focused Satellite Symposium at the HRS 2025 Annual Meeting. (1, 2, 3)

• InflaRx N.V. ($IFRX NASDAQ) - 17%: 
  Market Cap: 114,126,610
  
  A clinical-stage biopharmaceutical company that develops inhibitors for autoimmune and inflammatory diseases using C5a technology, primarily in Germany and the United States. Rationale: The 17% drop in InflaRx N.V.'s stock price is likely attributed to investor reactions to its first quarter 2025 results, announced via a PR release on May 7, 2025. (1)

• Wheels Up Experience Inc. ($UP NYSE) - 17%: 
  Market Cap: 803,705,100
  
  This US-based company offers private aviation services, including membership programs, on-demand flights, and aircraft management, with a fleet of 1,500 aircraft.
  
  The 17% decline in stock for Wheels Up Experience Inc. ($UP NYSE) can be primarily attributed to the company's receipt of the NYSE Continued Listing Standard Notice, indicating potential concerns about their compliance with listing standards, coupled with the anticipation surrounding the announcement of their first quarter 2025 earnings. (1, 2)

• Gossamer Bio, Inc. ($GOSS NASDAQ) - 16%: 
  Market Cap: 231,765,420
  
  This clinical-stage biopharmaceutical firm focuses on developing therapies for immunology, inflammation, and oncology, specializing in small molecule treatments.

📉 Biggest Loser 

• ProKidney Corp. ($PROK NASDAQ) - -18%: 
  Market Cap: 259,213,044
  
  This clinical-stage biotechnology firm specializes in developing cellular therapy candidates for treating severe kidney diseases and urinary tract anomalies.

🚀 Biggest Movers

• Plug Power Inc. ($PLUG NASDAQ) - 159,916,864 shares traded with an average volume of 67,885,350 (-9%): 
  Market Cap: 847,886,223
  
  Specializes in delivering clean hydrogen and zero-emissions fuel cell solutions for various sectors, and building a green hydrogen ecosystem globally.
  
  The recent increase in Plug Power Inc.'s stock price can be attributed to its successful signing of a $525 million secured credit facility with Yorkville Advisors and its robust preliminary results for Q1 2025, as disclosed in the company's PR releases. (1)

• BigBear.ai Holdings, Inc. ($BBAI NYSE) - 46,403,435 shares traded with an average volume of 63,345,121 (-5%): 
  Market Cap: 985,513,870
  
  This firm offers artificial intelligence and machine learning services such as cybersecurity, IT consulting and analytics in decision support.
  
  The recent price change in shares of BigBear.ai which saw a 5% decrease in trading volume, can be attributed to the flurry of public relations releases revealing ongoing securities fraud class actions and urging investors to join these lawsuits, thereby negatively impacting investor sentiment and market confidence. (1, 2, 3)

Post Of The Day

👀 Stocks To Add To Your Watchlist

$WPRT ( ▼ 2.66% ) · NASDAQ Global Select — Westport Fuel Systems Inc. 
Consumer Cyclical/Auto - Parts · YTD: -72.145%

In the face of April's challenging market conditions, Westport stands out with promising developments. Despite the broader economic unease and a recent market cap of $50.6M, the company's strategic move—entering into lock-up agreements to vote in favor of selling Westport Fuel Systems Italia S.r.l.—signals a proactive stance.

Coupled with a noteworthy improvement in net cash provided by operating activities ($7.2M), Westport exhibits resilience and strategic agility. Investors should eye WPRT for potential value, especially given its pioneering role in alternative fuel systems, amidst ongoing global shifts towards sustainable transportation solutions.

$EGBN ( ▲ 1.71% ) · NASDAQ Capital Market — Eagle Bancorp, Inc. 
Financial Services/Banks - Regional · YTD: -96.195% - undefined

Eagle Bancorp, Inc. (NASDAQ: EGBN) faces turbulence amidst multiple investigations into potential securities fraud, affecting investor confidence. With a recent stock decline to $17.95 and an alarming volume spike on April 24th following their Q1 earnings release, the stock has shown significant volatility.

Senior executives have shown faith through insider purchases, yet investor caution is advised due to ongoing legal scrutiny and market instability. Consider monitoring EGBN closely for any developments or stabilization before making investment decisions.

$MTEN ( ▲ 0.5% ) · NASDAQ Global Market — Mingteng International Corporation Inc.
Industrials/Manufacturing - Metal Fabrication · YTD: -83.793% - undefined

Despite broader market volatility, Mingteng showcases significant potential, primarily due to its strategic expansions and a positive performance trajectory in the fiercely competitive automotive mold sector. With a recent surge of 6.21% in stock price & closing at $7.7, amid expanded production capabilities and workforce, MTEN is positioning itself as a robust player in the industrials sector. Given these strategic moves and the company's resilience amidst challenging economic conditions, MTEN represents a noteworthy opportunity for investors looking at small and micro-cap stocks with growth potential.

$MRVI ( ▲ 2.49% ) · NASDAQ Global Select — Maravai LifeSciences Holdings, Inc. 
Healthcare/Biotechnology · YTD: -81.685%

Maravai has recently faced significant challenges, including a below-expectation Q4 report and a flurry of securities fraud lawsuits. Despite these hurdles and the volatile market, MRVI displayed resilience with a notable closing at $2.02 on April 30, 2025, following a dip to $1.77 earlier in the month.

The stock's ability to recover amid sector and legal pressures, coupled with insider buying signals, suggests a potential turnaround or an opportune entry point for speculative investors seeking high-risk, high-reward positions in the biotech sector.

$BFST ( ▲ 0.48% ) · NASDAQ Global Select — Business First Bancshares, Inc. 
Financial Services/Banks - Regional · YTD: -96.133%

Amidst market volatility and a contracting U.S. GDP, Bancshares, Inc. has demonstrated resilience, announcing a Q1 2025 net income rise to $19.2 million - an increase from the previous quarter. While the broader markets waver, BFST's consistent growth and recent board member addition signal stability and potential upside for investors.

With shares currently priced at $23.05, near the middle of their 52-week range, BFST offers an appealing entry point for those looking to invest in a steadfast financial sector player with a modest beta of 0.741, suggesting lower volatility compared to the market.

That’s it for this episode!

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Disclaimer: This newsletter is for informational purposes only and contains forward-looking statements that involve risks and uncertainties. Investor Insights Systems does not provide financial advice—please consult a licensed advisor before making investment decisions.