📊 Small-Cap Standouts: Biotech Soars, HUYA Stuns, and NUTX Turns It Around

Good Morning Investors,

Small-cap investors had plenty to chew on yesterday. While Trump-China trade headlines helped lift overall sentiment, it was earnings that truly moved the needle. HUYA tanked after a brutal revenue miss, while Nutex Health flipped the script with a major turnaround in both revenue and profitability.

Biotech and AR names like Humacyte and Vuzix posted solid results, and Village Farms gained traction on international growth and a strategic shift. As tariff uncertainty lingers, earnings are proving to be the clearest signal in an otherwise noisy market.

Matthias Schneider
Editor at Analytica Investor

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

Yesterday's small-cap market saw varied movements, with the Russell 2000 rising by 0.5%, while the S&P/TSX Venture Composite Index declined by 1.4%. The NASDAQ Composite, keenly watched for its strong representation of technology and growth stocks, posted significant gains at 1.6%.

In the broader market, technology sectors displayed resilience, with the Dow Jones U.S. Semiconductors Index and S&P 500 Information Technology Sector rising by 4.4% and 2.2%, respectively. Meanwhile, the commodity markets also observed an upswing as represented by the 1.7% increase in the Thomson Reuters/CoreCommodity CRB Total Return Index.

In industry news, Fintech company Chime filed to go public on NASDAQ. This move indicates a healthy appetite for risk amidst reassurances of possible upside in the market.

JPMorgan's Camporeale highlights that despite the recent rally, certain stocks still offer value. This sentiment aligns with broader industry voice suggesting growth potential in the market.

However, global trade issues remain a keen focus for investors, as India considers retaliatory tariffs on U.S. goods. The full impact of existing tariffs on inflation is yet to surface, potentially posing future challenges for small-cap stocks sensitive to cost increases.

Despite market uncertainties, some experts believe 'new highs are reasonable after strong Q1 earnings'. As always, investors should keep abreast of these evolving dynamics in making informed decisions.

A Word From Our Partner

Learn AI in 5 minutes a day

This is the easiest way for a busy person wanting to learn AI in as little time as possible:

1. Sign up for The Rundown AI newsletter

2. They send you 5-minute email updates on the latest AI news and how to use it

3. You learn how to become 2x more productive by leveraging AI

Sign up to start learning.

📈 Biggest Gainers 

• Village Farms International, Inc. ($VFF NASDAQ) - 37%: 
  Market Cap: 107,843,568
  
  Produces, markets, and distributes greenhouse-grown vegetables and cannabis products, and operates a power plant in North America.
  
  The 37% surge in stock price was chiefly driven by Q1/25 results demonstrating a successful focus on profitable sales and international expansion, along with the transformative transaction to privatize the fresh produce business. (1, 2)

• Humacyte, Inc. ($HUMA NASDAQ) - 31%: 
  Market Cap: 268,355,870
  
  Specializes in developing and manufacturing bioengineered human tissues for treatment of various diseases, using its proprietary technology to create human acellular vessels.
  
  The revelation of the first quarter financial results and the subsequent corporate update, which unveiled crucial business insights, led to a 31% surge in stock prices. (1, 2)

• Nautilus Biotechnology, Inc. ($NAUT NASDAQ) - 28%:
  Market Cap: 116,939,196
  
  This Seattle-based firm develops a proteomics platform comprising of instruments, consumables, and software analysis for quantifying the proteome's complexity.

• Vuzix Corporation ($VUZI NASDAQ) - 24%:
  Market Cap: 197,849,028
  
  Specializes in designing, manufacturing and selling augmented reality wearable display and computing devices for consumer and enterprise markets globally.
  
  The unveiling of significant advancements in Custom MicroLED Backplane Development in conjunction with Fraunhofer IPMS and the release of positive first quarter 2025 results resulted in a 24% surge in the firm's stock value. (1, 2)

• Agape ATP Corporation ($ATPC NASDAQ) - 22%:
  Market Cap: 101,010,908
  
  This Malaysia-based company supplies health and wellness products and health solution advisory services, including various nutritional supplements and skincare products.

📉 Biggest Losers

• Sangamo Therapeutics, Inc. ($SGMO NASDAQ) - -38%: 
  Market Cap: 105,428,780
  
  A clinical-stage biotechnology firm specializing in genomic medicines using gene and cell therapy, genome editing, and genome regulation technologies.
  
  The recent 38% drop in stock price was driven by the announcement of a $23.0 million underwritten offering along with the release of the company's first quarter 2025 financial results, which may have disappointed investor expectations. Furthermore, despite the reported derisking milestones in preparation of a Biologics License Application submission for ST-920 in Fabry Disease, market reaction suggests this was not as positively received as anticipated. (1, 2, 3, 4)

• 3D Systems Corporation ($DDD NYSE) - -27%:
  Market Cap: 253,469,150
  
  Provides 3D printing and digital manufacturing solutions globally, offering 3D printers, print materials, digital design tools, and related software and services.
  
  The steady stream of investigation alerts from Pomerantz Law Firm concerning investor claims significantly influenced the 27% decline in the stock's price, despite the unveiling of its expansive NextDent® Material Portfolio and its first quarter 2025 financial results. (1, 2, 3, 4, 5, 6, 7, 8)

• Aquestive Therapeutics, Inc. ($AQST NASDAQ) - -20%: 
  Market Cap: 227,444,861
  
  This pharmaceutical company identifies, develops, and commercializes products for unmet medical needs, specializing in oral soluble film formulations for various treatments.
  
  The release of the first-quarter 2025 financial results and business update led to a material drop of 20% in the stock price due to unfavorable performance indicators. (1)

🚀 Biggest Movers

• Plug Power Inc. ($PLUG NASDAQ) - 180,142,186 shares traded with an average volume of 73,631,057 (-10%):
  Market Cap: 830,296,047
  
  Delivers clean hydrogen and zero-emissions fuel cell solutions for various applications, and builds an end-to-end green hydrogen ecosystem globally.
  
  The recent decrease in stock value by 10% was directly influenced by the dissemination of the first quarter 2025 financial results. (1)

• Opendoor Technologies Inc. ($OPEN NASDAQ) - 63,975,651 shares traded with an average volume of 49,315,232 (1%): 
  Market Cap: 518,318,657
  
  This firm operates a digital real estate platform in the US, facilitating online home buying and selling, and offering title insurance and escrow services.
  
  The release of the first quarter 2025 financial results demonstrably spurred trading activity, leading to a notable increase in the stock price. (1)

• Wolfspeed, Inc. ($WOLF NYSE) - 58,518,005 shares traded with an average volume of 26,894,049 (16%):
  Market Cap: 602,059,770
  
  Specializes in silicon carbide and gallium nitride materials, power devices, and radio frequency devices for various industrial, commercial, and military applications.
  
  The recent addition of two seasoned directors to the board, as disclosed in the PR releases, has catalyzed the surge in trade volumes and ultimately, the rise in stock price. (1)

Post Of The Day

💵 Recent Earnings

Buckle up readers, as HUYA takes a distressing nosedive with a shocking -85% shortfall in revenue, while Hallador Energy turns coal into gold with a 19% boost in earnings from yesterday.

Reporting May 13th, 2025:

• HUYA Inc. $HUYA ( ▼ 4.39% ) - A Tencent subsidiary, operates game live streaming platforms in China and internationally, and provides online advertising and software development services.

• Revenue: 206,931,292 vs est. 1,374,007,380 (-85%), EPS: 0.04127 vs est. -0.00132 (3227%)
• Market Cap: 827,446,655
• Sector, Industry: Technology, Media & Entertainment

• XPLR Infrastructure, LP $XIFR ( ▼ 1.21% ) - Acquires, manages and owns contracted clean energy projects, including wind, solar and natural gas assets, in North America.

• Revenue: 282,000,000 vs est. 388,477,180 (-27%), EPS: 1.65 vs est. -0.17 (1071%)
• Market Cap: 921,209,800
• Sector, Industry: Utilities, Independent Power Producers

• Altius Minerals Corporation $ALS.TSX ( ▼ 0.33% )- A diversified mining royalty and streaming company with interests in various mineral resources and renewable energy investments.

• Revenue: 10,389,942 vs est. 15,000,000 (-31%), EPS: 0.04864 vs est. 0.05211 (-7%)
• Market Cap: 883,186,488
• Sector, Industry: Basic Materials, Industrial Materials

Announced May 12th, 2025:

• Trican Well Service Ltd. $TCW.TSX ( ▼ 0.22% ) .TO - Provides specialized equipment, services, and technology for the drilling and reworking of oil and gas wells in Canada.

• Revenue: 262,137,749 vs est. 268,218,483 (-2%), EPS: 0.1638 vs est. 0.08 (105%)
• Market Cap: 813,767,040
• Sector, Industry: Energy, Oil & Gas Equipment & Services

• Sally Beauty Holdings, Inc. $SBH ( ▲ 2.35% ) - A specialty retailer and distributor of professional beauty supplies with operations globally.

• Revenue: 883,146,000 vs est. 901,460,000 (-2%), EPS: 0.42 vs est. 0.39 (8%) • Market Cap: 954,289,440
• Sector, Industry: Consumer Cyclical, Specialty Retail

• Redwire Corporation $RDW ( ▼ 4.52% ) - Designs, manufactures, and sells critical space solutions, software and offers in-orbit servicing internationally from its Florida headquarters.

• Revenue: 61,395,000 vs est. 85,260,670 (-28%), EPS: -0.2 vs est. -0.2 (0%)
• Market Cap: 877,967,397
• Sector, Industry: Industrials, Aerospace & Defense

• Plug Power Inc. $PLUG ( ▼ 2.63% ) - Provides clean hydrogen and zero-emissions fuel cell solutions for various applications in North America and internationally.

• Revenue: 133,674,000 vs est. 131,794,840 (1%), EPS: -0.21 vs est. -0.2 (-5%)
• Market Cap: 830,296,047
• Sector, Industry: Industrials, Electrical Equipment & Parts

👀 Stocks To Add To Your Watchlist

$GLAD ( ▼ 0.77% ) · NASDAQ Global Select — Gladstone Capital Corporation
Financial Services/Asset Management · YTD: -96.531%

GLAD exhibits resilience in the fluctuating financial services sector, with its stock price rising to $26.48, marking a recent 2.08% increase. Despite a mixed market due to trade uncertainties and inflation concerns, GLAD's diversified investment approach in lower middle market businesses shows promise.

However, caution is advised as its premium to NAV remains high at 17.38%, and the sustainability of its 7.9% dividend yield could be questioned amid a 101% coverage rate and slight portfolio stress.

$TWFG ( ▲ 1.12% ) · NASDAQ — TWFG, Inc. Common Stock
Financial Services/Insurance - Brokers · YTD: -96.796%

In the wake of posting a robust first quarter in 2025, TWFG, Inc. (NASDAQ: TWFG) has shown impressive growth, with a 16.6% increase in total revenues to $53.8M and a 15.5% surge in total written premiums to $371.0M compared to the previous year.

Notably, the company's Adjusted EBITDA soared by 35.3% to $12.2M, reflecting a significant enhancement in operational efficiency. Given these strong earnings and the recent strategic expansions, TWFG presents a compelling case for investors looking for growth in the financial services and insurance brokerage sectors.

$NUTX ( ▼ 4.29% ) · NASDAQ Capital Market — Nutex Health, Inc.
Healthcare/Medical - Healthcare Information Services · YTD: -96.878%

NUTX showcased a striking Q1 2025 performance, with total revenue skyrocketing to $211.8 million from $67.5 million in Q1 2024, marking a 213.8% increase. This leap led to a net income of $14.6 million, a substantial recovery from a net loss of $0.4 million in the previous year.

Given these figures and a notable improvement in both EBITDA and adjusted EBITDA, NUTX represents a compelling opportunity in the healthcare sector, underpinned by robust growth and financial turnaround.

$TMCI ( ▲ 0.92% ) · NASDAQ Global Select — Treace Medical Concepts, Inc. Healthcare/Medical - Devices · YTD: -86.72%

Treace Medical has been weathering significant volatility, demonstrated by a recent dramatic volume increase and stock price fluctuation. The company faces a pending class action lawsuit, underscoring potential risks. However, its distinct position in the orthopedic medical device sector, coupled with insider transactions that indicate mixed sentiment, suggests careful monitoring.

Investors should weigh the legal uncertainties against Treace's innovative footprint in foot and ankle surgery solutions. Risk-tolerant investors might explore opportunities at these lower valuations, keeping an eye on lawsuit developments and sector performance.

That’s it for this episode!

Thank you for taking the time to read today’s email! Your support is what allows me to send out this newsletter for free every week. 

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.