📊 Small Caps Rally: Russell 2000 Climbs 2.2% as Volume Spikes on $KIDZ, $WOLF

Good Morning Investors,

Markets shrugged off recession warnings and inflation chatter Friday, with small caps leading the charge—Russell 2000 up 2.2%.

But the real momentum was under the hood: $KIDZ exploded on 7x average volume after a $400M equity deal, while $WOLF surged 24% following a leadership shakeup. Toss in strong factory data and a resilient jobs print, and risk appetite is clearly back—at least for now.

Matthias Schneider
Editor at Analytica Investor

↑ ↓ 1-day change
Market data: May 2nd, 2025 market close

The small-cap sector showed strong momentum last Friday with the Russell 2000 rallying by 2.2% while the S&P/TSX Venture Composite Index saw a similar trend, increasing by 1.6%. Continued trade tensions and recent economic developments seem to be driving investor sentiment towards smaller equities, as indicated by these robust performances.

On the industry front, the secondary index data points towards growth across multiple sectors, with Semiconductors leading the pack at a gain of 2.8%, thus hinting at the emerging strength in the Tech sector. Biotechnology also made solid advances, pointing towards potential investment opportunities in the said sector.

Talking about news developments, it was a mixed bag with hints of a trade reset recession by Apollo Global's Torsten Slok, a potential Federal Reserve review of confidential ratings for US banks, and news of the S&P recouping its tariff losses, primarily influenced by a strong Q1 earnings scenario - as reported by Vital's Adam Crisafulli.

Inflation fears are once again on the rise (as indicated by Market Watch hinting towards securing savings against inflation by locking in on the new Series I bond rate). Combined with expectations of a market disruption (reported by Seeking Alpha), there seems to be an undercurrent of uncertainty.

That being said, resilience in the job market and robust factory orders - as shown by the latest CNBC and Reuters reports respectively - seem to have lent some buoyancy to investor sentiment today, driving the positive momentum in the small-cap space. More clarity will, however, emerge from future FOMC meetings and Fed's responsibility towards interest rate adjustments remains a topic of interest.

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📈 Biggest Gainers 

Inozyme Pharma, Inc. ($INZY NASDAQ) - 34%:

Market Cap: 104,069,124

This biopharmaceutical company focuses on developing therapeutics for rare diseases related to abnormal mineralization, with leading candidate INZ-701.

The E.W. Scripps Company ($SSP NASDAQ) - 27%:

Market Cap: 214,480,767

Operates as a media enterprise with a portfolio of local and national brands, offering content via broadcast stations, digital operations and national networks.

Recent accolades and recognitions such as two Peabody Awards for investigative reporting, three National Headliner Awards, and numerous nominations for esteemed journalism awards, have precipitated a significant 27% uplift in the stock price. (1, 2, 3)

📉 Biggest Losers 

Phathom Pharmaceuticals, Inc. ($PHAT NASDAQ) - -18%: 

Market Cap: 192,229,308

This clinical-stage biopharmaceutical company specializes in developing treatments for gastrointestinal diseases, notably a potential treatment for erosive gastroesophageal reflux disease.

The recent 18% drop in share price was majorly influenced by the financial results for the first quarter of 2025, which likely disappointed investors, in conjunction with the announcement of inducement grants under Nasdaq Listing Rule 5635(c)(4) that possibly sparked concerns about dilution of shares. The impending presentation of VOQUEZNA® data, although bearing potential future prospects, hasn't counterbalanced these impacts. (1,2, 3)

fuboTV Inc. ($FUBO NYSE) - 44,805,515 shares traded with an average volume of 18,549,272 (-17%):

Market Cap: 826,374,340

Operates a live TV streaming platform for sports, news, and entertainment content accessible on various devices and platforms globally.

The stock's recent price changes occurred due to exceeding subscriber guidance and achieving revenue targets in Q1 2025, as revealed in the latest PR releases about the successful performance of the global streaming business. (1)

🚀 Biggest Movers

Classover Holdings, Inc. Class B Common Stock ($KIDZ NASDAQ) - 110,454,199 shares traded with an average volume of 15,853,155 (34%):

Market Cap: 112,965,094

This education technology firm offers online interactive courses for K-12 students globally, aiming to boost their academic achievements and curiosity.

The recent increase in the stock's trading volume and price is directly caused by the announcement of a $400 million equity purchase facility agreement, designed to initiate a SOL-based treasury strategy. (1)

Plug Power Inc. ($PLUG NASDAQ) - 102,104,672 shares traded with an average volume of 70,224,664 (-1%):

Market Cap: 824,003,785

Delivers clean hydrogen and zero-emissions fuel cell solutions for applications like supply chain, logistics, on-road electric vehicles, and stationary power markets.

The stock's recent price changes were directly driven by the PR releases announcing the $525 Million Secured Credit Facility with Yorkville Advisors and the reporting of strong preliminary Q1 2025 results. (1)

- BigBear.ai Holdings, Inc. ($BBAI NYSE) - 89,186,930 shares traded with an average volume of 63,638,862 (1%):

Market Cap: 971,063,520

It provides artificial intelligence and machine learning solutions for decision support, cybersecurity, cloud engineering, and big data analytics.

The multiple press releases announcing securities law violations and class action lawsuits have directly led to the decline in the stock's recent price. (1, 2, 3,)

Wolfspeed, Inc. ($WOLF NYSE) - 79,368,599 shares traded with an average volume of 25,076,872 (24%):

Market Cap: 693,846,660

Provides silicon carbide and gallium nitride materials, power devices, and radio frequency devices for various industrial, automotive, and telecommunication applications.

The announcement of an executive leadership change within the firm caused a marked surge in traded shares, reflecting a consequential impact on the recent rise in the stock's price. (1, 2)

💵 Recent Earnings

FuboTV kicked a goal with a 7% revenue boost and a better-than-expected EPS, while Westlake Chemical Partners and A&W weren’t quite as tasty, missing revenue expectations by 20% and 30%, respectively.

Reporting May 2nd, 2025:

-Westlake Chemical Partners LP $WLKP ( ▼ 0.54% ) - Westlake Chemical Partners LP operates ethylene production facilities and sells ethylene co-products in the United States.

• Revenue: 237,629,000 vs est. 296,000,000 (-20%), EPS: 1.2 vs est. 0.38 (216%)

• Market Cap: 820,002,222

• Sector, Industry: Basic Materials, Chemicals

- fuboTV Inc. $FUBO ( ▼ 1.27% ) - A global streaming platform providing live sports, news, and entertainment content across various digital devices.

• Revenue: 416,286,000 vs est. 387,682,000 (7%), EPS: -0.02 vs est. -0.04 (50%)

• Market Cap: 826,374,340

• Sector, Industry: Communication Services, Broadcasting

- Proto Labs, Inc. $PRLB ( ▲ 0.05% ) - A digital manufacturer providing custom prototypes and on-demand production parts through e-commerce, specializing in 3D printing and machining.

• Revenue: 126,205,000 vs est. 126,701,750 (0%), EPS: 0.1473 vs est. 0.28 (-47%)

• Market Cap: 911,602,510

• Sector, Industry: Industrials, Manufacturing - Metal Fabrication

Announced May 1st, 2025:

-Ecovyst Inc. $ECVT ( 0.0% ) - Offers specialty catalysts and services including sulfuric acid recycling and customized catalyst products for various industrial applications worldwide.

• Revenue: 162,200,000 vs est. 202,870,250 (-20%), EPS: 0.01 vs est. -0.03 (133%)

• Market Cap: 775,921,460

• Sector, Industry: Basic Materials, Chemicals - Specialty

- Cohu, Inc. $COHU ( ▲ 0.11% ) - Provides semiconductor test equipment, services, and related software to semiconductor and electronics manufacturers globally from its California headquarters.

• Revenue: 96,797,000 vs est. 96,612,600 (0%), EPS: -0.02 vs est. -0.16 (88%)

• Market Cap: 776,752,600

• Sector, Industry: Technology, Semiconductors

- Emerald Holding, Inc. $EEX ( ▲ 0.21% ) - Operates B2B trade shows, content marketing websites, digital products, and platforms to streamline wholesale buying processes.

• Revenue: 147,700,000 vs est. 100,600,000 (47%), EPS: 0.08 vs est. 0.07 (14%)

• Market Cap: 914,154,260

• Sector, Industry: Communication Services, Advertising Agencies

- Frontier Group Holdings, Inc. $ULCC ( ▲ 0.3% ) -Operates a low-fare airline, serving approximately 120 airports in the US and the Americas.

• Revenue: 912,000,000 vs est. 957,074,000 (-5%), EPS: -0.19 vs est. -0.22 (14%)

• Market Cap: 764,994,720

• Sector, Industry: Industrials, Airlines, Airports & Air Services

- Cable One, Inc. $CABO ( ▲ 1.71% ) - Provides data, video, and voice services to residential and business customers across the United States.

• Revenue: 380,601,000 vs est. 386,607,500 (-2%), EPS: 12.32 vs est. 12.21 (1%)

• Market Cap: 858,254,600

• Sector, Industry: Communication Services, Telecommunications Services

- PROS Holdings, Inc. $PRO ( ▼ 2.92% ) - Provides software solutions worldwide to optimize sales and shopping processes in the digital economy across multiple industries.

• Revenue: 86,322,000 vs est. 85,656,930 (1%), EPS: 0.13 vs est. 0.13 (0%)

• Market Cap: 785,296,495

• Sector, Industry: Technology, Software - Application

- BigBear.ai Holdings, Inc. $BBAI ( ▲ 1.01% ) - Provides AI and machine learning solutions for decision support, cybersecurity, cloud engineering, and big data analytics.

• Revenue: 34,757,000 vs est. 36,262,000 (-4%), EPS: -0.1 vs est. -0.06 (-67%)

• Market Cap: 971,063,520

• Sector, Industry: Technology, Information Technology Services

Post Of The Day

🏦 Recent & Relevant IPOs

The most noteworthy small-cap IPOs recently include Gores Holdings X, Inc. ($312 million) and Republic Digital Acquisition Company ($264 million) both on NASDAQ.

- Digital Asset Acquisition Corp. Units ($DAAQU) on NASDAQ (2025-04-29). Market Cap: $150,000,000

- Real Asset Acquisition Corp. Unit ($RAAQU) on NASDAQ (2025-04-29). Market Cap: $150,000,000

- Berto Acquisition Corp. Unit ($TACOU) on NASDAQ (2025-04-30). Market Cap: $261,000,000

- Lakeshore Acquisition III Corp. Unit ($LCCCU) on NASDAQ (2025-04-30). Market Cap: $60,000,000

- Yuanbao Inc. American Depositary Shares ($YB) on NASDAQ (2025-04-30). Market Cap: $30,000,000

- Republic Digital Acquisition Company Unit ($RDAGU) on NASDAQ (2025-05-01). Market Cap: $264,000,000

- Copley Acquisition Corp ($COPLU) on NYSE (2025-05-01). Market Cap: $150,000,000

- Winchester Bancorp, Inc. Common Stock ($WSBK) on NASDAQ (2025-05-02). Market Cap: $39,970,120

- OMS Energy Technologies Inc. ($OMSE) on NASDAQ (2025-05-02). Market Cap: $63,888,890

- Gores Holdings X, Inc. Units ($GTENU) on NASDAQ (2025-05-02). Market Cap: $312,000,000

- Cartesian Growth Corporation III Unit ($CGCTU) on NASDAQ (2025-05-02). Market Cap: $240,000,000

- Cantor Equity Partners II, Inc. Class A Ordinary Share ($CEPT) on NASDAQ (2025-05-02). Market Cap: $240,000,000

- Smart Digital Group Limited Ordinary Shares ($SDM) on NASDAQ (2025-05-02). Market Cap: $6,000,000

👀 Stocks To Add To Your Watchlist

$CGC ( ▼ 3.88% ) · NASDAQ Global Select — Canopy Growth Corporation

Healthcare/Drug Manufacturers - Specialty & Generic · YTD: -64.789%

Despite facing legal challenges and market volatility, CGC has shown resilience with a notable volume surge and price increase. On 2025-04-24, CGC experienced a 20.16% jump, closing at $1.49 with an impressive volume of 16,181,600 shares traded.

However, cautious investors should note the ongoing legal proceedings and recent price correction on 2025-05-02, witnessing a 5% decrease to $1.33. Given the unpredictable landscape of the healthcare sector and CGC’s beta of 2.185, prudent portfolio balancing and vigilant monitoring of the evolving situation are advised.

$ARVN ( ▼ 0.4% ) · NASDAQ Global Select — Arvinas, Inc.

Healthcare/Biotechnology · YTD: -94.882%

ARVN is currently under investigation for potential securities fraud, following a significant 20% share price drop and legal inquiries by multiple law firms. This situation arises amidst a broader strategic re-prioritization, including workforce reduction aimed at extending cash runway into the second half of 2028.

Investors should exercise caution, considering the legal uncertainties and recent volatile stock performance, while keeping an eye on potential long-term gains from its promising clinical trials in targeted protein degradation.

$HEPS ( ▼ 2.04% ) · NASDAQ Global Select — D-Market Elektronik Hizmetler ve Ticaret A.S.

Consumer Cyclical/Specialty Retail · YTD: -67.105%

A prominent Turkish e-commerce platform, exhibits volatility with a beta of 2.426955, indicating potential for significant price swings. Recent endeavors including the fourth bond issuance by its subsidiary Hepsifinans showcase strategic financial management.

Despite recent price variability, HEPS's diversified e-commerce and financial services might offer a speculative opportunity for investors looking for exposure to the Turkish market and consumer cyclical sector.

$NSSC ( ▼ 3.66% ) · NASDAQ Global Select — Napco Security Technologies, Inc.

Industrials/Security & Protection Services · YTD: -97.207%

Despite recent volatility in the technology sector, Napco has demonstrated resilience and growth potential. With a closing price of $23.78, reflecting a 1.89% increase on May 2, 2025, NSSC shows promising momentum.

The company's strategic focus on high-tech electronic security devices and a series of positive volume movements suggest room for upward trajectory. Considering its involvement in the industrials sector, which has shown signs of recovery, Napco stands out as a potential growth stock. Investors should note recent legal concerns but weigh them against the company's solid fundamentals and the ongoing demand for security technologies.

$OKYO ( ▲ 5.33% ) · NASDAQ Capital Market — OKYO Pharma Limited

Healthcare/Biotechnology · YTD: -15.966%

OKYO presents a speculative opportunity in the biopharmaceutical sector, driven by its promising development in treatments for inflammatory eye diseases and ocular pain. Despite recent volatility, significant insider purchases by Executive Chairman Gabriele M. Cerrone signal strong leadership belief in the company's value proposition.

With early termination of its Phase 2 trial for neuropathic corneal pain, OKYO aims for accelerated FDA discussions, potentially unlocking value. Consider for high-risk, growth-focused portfolios.

That’s it for this episode!

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