📊 Small-Cap Shakeup: One Soared 153%, Another Crashed 63%

Happy Wednesday, Investors!

Markets are holding steady, with small-caps showing signs of quiet strength. $LVWR ( ▼ 5.35% ) lit up the board on massive volume as traders piled into the electric motorcycle story.

Meanwhile, $RCKT ( ▼ 4.59% ) plunged after clinical trial concerns rocked biotech. And over in SaaS, $ETWO ( ▼ 0.31% ) turned heads with acquisition chatter driving a volume spike.

Let’s break down the winners, losers, and movers. 👇

Matthias Schneider
Editor at Analytica Investor

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

Small-cap stocks, represented by the Russell 2000, experienced a significant gain of 2.4% alongside a 0.7% increase in the S&P/TSX Venture Composite Index. This positive movement reflected the overall upward trend of major indices, with the NASDAQ Composite following suit at a 2.4% rise. Secondary indices revealed an especially strong performance in the Technology sector with the Dow Jones U.S. Semiconductors Index and S&P 500 Information Technology leading at +3.1% and +2.5% respectively.

Positive sentiments were bolstered by the rebound of US consumer confidence after a 5-month slide and the postponement of a proposed 50% tariff on EU imports, offering promising signals for continued small-cap growth. Despite these developments, caution from investors and experts was also evident due to ongoing tariff discussions and their potential impact on market volatility.

Further trends to watch include the potential impacts of trade negotiations between the US and EU, fluctuations in the bond market, and inflation rates amidst the continued uncertainty around tariff outcomes. Notably, the small-cap focused Russell 2000, demonstrated its resilience against these broader economic uncertainties, reinforcing the diversified resilience of small-cap stocks in fluctuating market conditions.

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📈 Biggest Gainers 

• LiveWire Group, Inc. ($LVWR NYSE) - 66,561,364 shares traded with an average volume of 43,809 (153%): 
  Market Cap: 521,128,960
  
  Manufactures electric motorcycles globally under the LiveWire brand, with strategic partnerships with Harley-Davidson and the KYMCO Group, based in Milwaukee.

• PSQ Holdings, Inc. ($PSQH NYSE) - 38%: 
  Market Cap: 125,232,184
  
  This Florida-based company operates an app and website connecting consumers with value-sharing businesses and offers products based on member needs.
  
  The exploration of a digital asset treasury strategy as part of fintech initiatives, coupled with a CFO transition, instigated a 38% alteration in the stock's recent prices. (1, 2)

• Richtech Robotics Inc. Class B Common Stock ($RR NASDAQ) - 30%:
  Market Cap: 327,190,782
  
  This firm develops and sells robotic solutions for automation in the service industry, including transport, sanitation, and food delivery.

• NWTN Inc. ($NWTN NASDAQ) - 27%:
  Market Cap: 625,307,371
  
  A green mobility tech firm, focusing on AI, autonomous driving, IoT connectivity, and personalized passenger experiences with offices in UAE and China.
  
  The 27% surge in the stock was driven by the announcement of the AI Industrial Park Project in Abu Dhabi. (1)

• Braemar Hotels & Resorts Inc. ($BHR NYSE) - 22%: 
  Market Cap: 162,922,993
  
  This real estate investment trust (REIT) specializes in investing in luxury hotels and resorts.

📉 Biggest Losers

• Rocket Pharmaceuticals, Inc. ($RCKT NASDAQ) - 54,411,717 shares traded with an average volume of 3,057,240 (-63%): 
  Market Cap: 251,029,540
  
  This multi-platform biotech firm develops gene therapies for rare and devastating diseases through both ex vivo and in vivo programs.
  
  The recent decrease in the stock's trading volume was incited by the update on the Phase 2 Clinical Trial of RP-A501 for Danon Disease, as released through the company's public relations channel. (1)

• Savara Inc. ($SVRA NASDAQ) - -32%: 
  Market Cap: 335,303,780
  
  This clinical stage biopharmaceutical firm focuses on rare respiratory diseases and is developing a treatment for autoimmune pulmonary alveolar proteinosis.
  
  The recent 32% drop in stock price was precipitated by the announcement of a securities fraud investigation coupled with the refusal of the Food and Drug Administration to file for the Biologics License Application, overshadowing the firm's recent employment grant and participation in the Jefferies Global Healthcare Conference. (1, 2, 3, 4, 5)

• RAPT Therapeutics, Inc. ($RAPT NASDAQ) - -21%: 
  Market Cap: 129,087,605
  
  A clinical-stage biopharmaceutical company that develops oral small molecule therapies for unmet needs in oncology and inflammatory diseases.

🚀 Biggest Movers

• E2open Parent Holdings, Inc. ($ETWO NYSE) - 214,180,792 shares traded with an average volume of 1,426,307 (25%): 
  Market Cap: 992,537,600
  
  Provides cloud-based, end-to-end supply chain management SaaS platform globally, offering solutions for various industries from its Austin, Texas headquarters.
  
  Investigations into the fairness of the proposed sale and the subsequent announcement of acquisition by WiseTech Global have significantly influenced the recent fluctuations in the trading volume and price of the shares. (1, 2, 3)

• Opendoor Technologies Inc. ($OPEN NASDAQ) - 104,440,182 shares traded with an average volume of 58,134,624 (1%): 
  Market Cap: 500,533,570
  
  A digital platform for residential real estate facilitating online buying, selling of homes and providing title insurance based in Arizona.
  
  The recent fluctuations in the stock's price are directly influenced by the announcement of 'The Big Bad Wolf: The Wolf's Revenge' at Busch Gardens Williamsburg, which notably heightened investor interest and trading volume. (1)

• Canaan Inc. ($CAN NASDAQ) - 54,262,807 shares traded with an average volume of 20,872,520 (9%): 
  Market Cap: 198,289,661
  
  Specializes in designing and selling integrated circuits, leasing mining equipment, and distributing AI products worldwide, with a focus on bitcoin mining.
  
  The implementation of a US$30 million share repurchase program and the release of Unaudited First Quarter 2025 Financial Results amplified trading volumes, triggering significant price fluctuations in the stock. (1, 2, 3, 4)

Post Of The Day

👀 Stocks To Add To Your Watchlist

$ADTN ( ▼ 0.63% ) · NASDAQ Global Select — ADTRAN Holdings, Inc.
Technology/Communication Equipment
YTD: -7.701%
Market Cap: $642,220,128

Showcases resilience as it navigates current market challenges, posting a notable recovery with a price increase of 2.94872% in the last trading day, closing at $8.03. Recent insider activity reflects continued executive confidence, complementing its strong position in providing comprehensive fiber networking solutions.

Despite ongoing investigations into securities claims, ADTRAN’s commitment to innovation, as demonstrated by its introduction of the Ensemble Cloudlet vRouter and the UK's first commercial 50G PON service, positions it for potential growth. Investors should closely monitor ADTRAN's response to these legal challenges while considering the company's robust technological advancements and strategic market positioning.

$LAZR ( ▼ 6.23% ) · NASDAQ Global Select — Luminar Technologies, Inc. 
Consumer Cyclical/Auto - Parts
YTD: -39.902%
Market Cap: $172,982,861

Amid a turbulent legal landscape with multiple securities investigations underway, Luminar Technologies, Inc. (NASDAQ: LAZR) showcases resilience through strategic financial maneuvers.

Notably, its recent actions like the $50 million repurchase of convertible senior notes and securing a $200 million capital commitment bolster its balance sheet. Investors should closely monitor LAZR's navigational moves through these challenges, as these financial fortifications may signal a strategic pivot towards long-term stability and growth potential.

$HITI ( ▲ 0.91% ) · NASDAQ Capital Market — High Tide Inc. 
Healthcare/Medical - Pharmaceuticals
YTD: -31.325%
Market Cap: $184,540,236

HITI remains a compelling watch in the cannabis retail sector, displaying resilience with its recent expansion, opening new Canna Cabana locations in Ontario and Alberta.

Despite fluctuating stock performance in the last 30 days, the company showcases significant retail growth, evidenced by a record revenue of $142.5 million in Q1 2025 and an expanding Cabana Club loyalty program. This growth, coupled with strategic market penetration such as its entry into the German medical cannabis market, underscores High Tide's aggressive expansion and solidifies its position in the competitive cannabis landscape.

$LSEA ( ▼ 0.09% ) · NASDAQ Capital Market — Landsea Homes Corporation
Real Estate - Development
YTD: +36.232%
Market Cap: $410,700,288

With its significant exposure to key growth markets such as California, Arizona, and Texas, stands out as a compelling pick in the real estate development sector. Despite the broader market's tariff and inflation concerns, LSEA's urban and suburban housing projects cater to both entry-level and first-time move-up buyers, leveraging the resilience of the U.S. real estate market.

Recent insider trades and a proposed acquisition at $11.30 per share, substantially above its recent trading range, suggest confidence from both management and potential acquirers in the company's intrinsic value. Given the stock's performance and strategic acquisitions, Landsea Homes Corporation represents an attractive investment opportunity in the real estate development industry.

$MERC ( ▲ 0.58% ) · NASDAQ Global Select — Mercer International Inc. 
Basic Materials/Paper, Lumber & Forest Products
YTD: -44.288%
Market Cap: $238,060,048

A leader in the pulp and green energy sectors, has recently shown strong insider confidence, with key officers and directors bolstering their positions through significant purchases. Amidst a challenging quarter reflected by a $22.3 million net loss, these actions suggest belief in the company's resilience and growth strategy. Additionally, Mercer's commitment to sustainability is evident in its latest report, outlining progress towards 2030 goals.

With strategic initiatives aimed at generating $100 million in savings by 2026 and advancements in carbon capture technology, Mercer is positioning itself for long-term success. Investors should monitor MERC for potential recovery and growth, especially given recent volatility and the sector's broader positive momentum.

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.