📊 Small Caps Rally While AI Soars, But Inflation Jitters Linger

Good Morning Investors,

Even with Moody’s downgrade and renewed tariff talk weighing on sentiment, Friday’s small-cap session had clear winners. $NWTN ( ▲ 19.32% ) rallied on the back of a strategic leadership shakeup aimed at scaling its AI mobility business.

$PLBY ( 0.0% ) jumped after posting strong Q1 numbers, while Bitcoin Depot climbed on solid earnings tied to crypto momentum. Agape ATP rounded out the top performers with renewed interest in its wellness platform.

Despite macro unease, pockets of strength continue to emerge—especially in sectors where leadership, results, and narrative align.

Matthias Schneider
Editor at Analytica Investor

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

Small-cap stocks showed robustness last Friday, with Russell 2000 gaining 0.9% and the S&P/TSX Venture Composite Index up by 0.8%. The NASDAQ Composite also closed with a moderate gain of 0.5%. Meanwhile, secondary indices demonstrated a buoyant biotechnology sector with the NASDAQ Biotechnology up by 1.6%.

Notable small-cap industry developments revolved around AI-based companies, with software stocks predicted to be better positioned due to AMAT's role in AI. Anthropic drew attention with an impressive $2.5 billion credit facility, showcasing Wall Street's continued investment in the AI boom.

However, uncertainties loom in the backdrop. Consumer sentiment has been on a significant decline, falling to near record low over concerns about inflation and tariff uncertainty. This anxiety is likely due to the looming return of Trump's tariffs and the recent credit downgrade of the US by Moody's.

Recent retail investors' 'buy-the-dip' strategies have shown promising results further fueling optimism in the small-cap market. Nonetheless, caution is advised as some argue that markets may be over-enthusiastic about resolving trade-related worries. Major IPO resurgences are anticipated for the latter half of Q3, promising increased market volatility. CNBC, Yahoo Finance, Fox Business.

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📈 Biggest Gainers 

• NWTN Inc. ($NWTN NASDAQ) - 48%:
  Market Cap: 546,413,428
  
  Specializes in green mobility technology emphasizing AI, autonomous driving, IoT connectivity, and personalized passenger experiences with a focus on tech-savvy consumers.
  
  The recent 48% surge in the stock's price is a direct result of the PR announcement about the appointment of a new CEO to steer strategic transformation. (1)

• Agape ATP Corporation ($ATPC NASDAQ) - 37%: 
  Market Cap: 102,511,070
  
  Supplies health and wellness products and advisory services, offering nutrition supplements, skincare, and wellness programs in Malaysia.

• PLBY Group, Inc. ($PLBY NASDAQ) - 32%:
  Market Cap: 145,608,550
  
  Operates as a pleasure and leisure company, offering sexual wellness products, lifestyle products, digital content subscriptions, and runs e-commerce platforms and retail stores.
  
  The recent 32% increase in stock price is a direct result of the positive financial results reported for the first quarter of 2025 by the company in its PR releases. (1)

• Bitcoin Depot Inc. ($BTM NASDAQ) - 28%: 
  Market Cap: 168,474,421
  
  Operates a network of cryptocurrency kiosks across North America, offering over-the-counter trade and sale of various cryptocurrencies.
  
  The stock's recent 28% surge was majorly catalyzed by the release of the company's impressive first quarter 2025 financial results. (1)

• Prime Medicine, Inc. ($PRME NASDAQ) - 26%:
  Market Cap: 208,758,176
  
  This biotechnology firm delivers genetic therapies for diseases using gene editing technology and is based in Cambridge, Massachusetts. .

• Lightwave Logic, Inc. ($LWLG NASDAQ) - 20%:
  Market Cap: 171,306,170
  
  This company develops photonic devices and non-linear optical polymer materials for fiber-optic data communications and optical computing markets.
  
  The appointment of Robert Blum as Senior Vice President of Sales and Marketing triggered a 20% upturn in the stock price, as his demonstrated expertise instilled confidence in market participants. (1)

📉 Biggest Losers

• XChange TEC.INC ($XHG NASDAQ) - -18%: 
  Market Cap: 210,687,360
  
  Engages in professional insurance agency business in China, offering various types of insurances and operating a SaaS platform for online services.
  
  The recent 18% decline in the stock price is a direct result of the announcement made regarding the firm's impending delisting from NASDAQ, despite plans to appeal. (1)

• Next Technology Holding Inc. ($NXTT NASDAQ) - -17%: 
  Market Cap: 916,156,500
  
  Provides technical services through a social e-commerce platform, with AI and big data analysis systems, primarily serving Chinese micro-businesses.

• KULR Technology Group, Inc. ($KULR AMEX) - -14%:
  Market Cap: 364,019,200
  
  This company develops and commercializes thermal management technologies for batteries, electronics, and other applications, primarily in the US.

🚀 Biggest Movers

• Plug Power Inc. ($PLUG NASDAQ) - 270,446,895 shares traded with an average volume of 81,142,101 (10%): 
  Market Cap: 832,909,816
  
  Delivers clean hydrogen and zero-emissions fuel cell solutions for various applications, including supply chain, logistics, electric vehicles, and stationary power markets globally.
  
  The recent fluctuation in share price is a direct result of the release of the first quarter 2025 financial results. (1)

• Virgin Galactic Holdings, Inc. ($SPCE NYSE) - 107,839,914 shares traded with an average volume of 1,916,364 (43%): 
  Market Cap: 191,956,800
  
  Specializes in developing and operating spaceships for commercial human spaceflight, research payloads, and providing related technological services.
  
  The unveiling of first quarter 2025 financial results and business update, along with the announcement of an inducement award under NYSE Listing Rule 303A.08, instigated notable trading activity, causing a remarkable surge in the stock's price. (1, 2)

• Opendoor Technologies Inc. ($OPEN NASDAQ) - 70,512,962 shares traded with an average volume of 53,161,421 (7%):
  Market Cap: 571,673,917
  
  This US-based company operates a digital platform for online buying and selling of residential real estate, and offers title insurance and escrow services.

• Inozyme Pharma, Inc. ($INZY NASDAQ) - 49,741,773 shares traded with an average volume of 817,411 (178%): 
  Market Cap: 255,019,110
  
  This biopharmaceutical firm develops therapeutics for abnormal mineralization impacting various diseases, with a lead product candidate designed to treat rare genetic diseases.
  
  The recent fluctuations in the stock's performance were induced by several investigations into the fairness of Inozyme Pharma's merger and acquisition, along with an alert from Halper Sadeh LLC regarding the sale of the firm, all of which stirred doubts among shareholders about the value of their investment. (1, 2, 3, 4, 5, 6)

🏦 Recent & Relevant IPOs

The most noteworthy recent small-cap IPOs include eToro Group Ltd. ($ETOR) with a market cap of $619,996,936 and Churchill Capital Corp X ($CCCXU) at $360,000,000.

• OMS Energy Technologies Inc. ($OMSE) on NASDAQ (2025-05-13). Market Cap: $33,333,336

• Perimeter Acquisition Corp. I ($PMTRU) on NASDAQ (2025-05-13). Market Cap: $210,000,000

• Antalpha Platform Holding Company ($ANTA) on NASDAQ (2025-05-14). Market Cap: $57,557,500

• eToro Group Ltd. ($ETOR) on NASDAQ (2025-05-14). Market Cap: $619,996,936

• Churchill Capital Corp X ($CCCXU) on NASDAQ (2025-05-14). Market Cap: $360,000,000

Post Of The Day

💵 Recent Earnings

While H.U. Group Holdings hung tight against revenue expectations, Towa Pharma slid a bit on both revenue and EPS. Meanwhile, MLP SE overachieved, pulling in 21% more revenue than anticipated.

Reporting 2025-05-16:

-H.U. Group Holdings, Inc. $MRCHF - Provides lab testing services, develops diagnostic devices, offers medical-related support services, and supplies nursing-care equipment in Japan.

• Revenue: 406,479,348 vs est. 407,645,898 (0%)

•  EPS: -0.00387 vs est. -0.05807 (93%)

• Market Cap: 962,560,091

• Sector, Industry: Healthcare, Medical - Diagnostics & Research

-MLP SE $0NDP.L - Offers financial brokerage and consulting services, banking, wealth management, insurance, investment management, real estate development, and industrial brokerage services, primarily in Germany.

• Revenue: 295,000,000 vs est. 244,099,840 (21%)

•  EPS: 0.23 vs est. 0.23 (0%)

• Market Cap: 896,243,092

• Sector, Industry: Financial Services, Financial - Diversified

-Towa Pharmaceutical Co., Ltd. $TWAPF - Based in Osaka, this firm researches, develops, and sells pharmaceutical products primarily in Japan, specializing in various therapeutic areas and oncology.

• Revenue: 439,002,762 vs est. 453,099,536 (-3%)

•  EPS: 0.591 vs est. 0.759 (-22%)

• Market Cap: 828,492,043

• Sector, Industry: Healthcare, Drug Manufacturers - Specialty & Generic

👀 Stocks To Add To Your Watchlist

$IOVA ( ▼ 2.94% ) · NASDAQ Global Market — Iovance Biotherapeutics, Inc.
Healthcare/Biotechnology · YTD: -78.691%
Market Cap: $554,330,440

IOVA has experienced a significant decline, closing at $1.66 with a -2.35% change on the last trading day. Amid recent security fraud lawsuits and a substantial share price drop, investors are focusing on its clinical-stage cancer immunotherapy developments.

Despite the challenges, IOVA's aggressive insider buying, ongoing phase 2 studies, and potential in cancer immunotherapy may offer a speculative opportunity for high-risk-tolerant investors seeking a rebound candidate in the biotechnology sector.

$UCTT ( ▼ 2.06% ) · NASDAQ Global Select — Ultra Clean Holdings, Inc.
Technology/Semiconductors · YTD: -39.82%
Market Cap: $995,537,655

In recent trading sessions, Ultra Clean Holdings, Inc. (UCTT) has demonstrated impressive resilience and growth amidst sector-wide fluctuations. With a noticeable jump in closing price to $22.05 on May 16th, from $18.7 on April 30th, the stock has outperformed broader Technology sector trends.

Particularly noteworthy is the stock's performance on May 14 and 15, with minimal declines in a stable volume environment, underscoring underlying strength. Investors should closely monitor UCTT as it navigates recent legal challenges, which have yet to impede its upward trajectory in the semiconductor industry space.

$NSSC ( ▼ 3.66% ) · NASDAQ Global Select — Napco Security Technologies, Inc.
Industrials/Security & Protection Services · YTD: -20.463%
Market Cap: $992,317,612

Napco Security Technologies, Inc. (NASDAQ: NSSC) stands out with its strong performance amidst the fluctuating Industrials sector, posting a notable 0.72385% increase to close at $27.83 recently. This uptick rides on the back of a reported significant volume increase, despite facing legal challenges.

The company's resilience in navigating distributor inventory shifts and its capability to adapt to market demands amidst ongoing lawsuits highlight its potential for growth. Current investors and those looking for opportunities in the Security & Protection Services industry should keep a close eye on NSSC's performance and legal developments.

$SVRA ( ▼ 0.48% ) · NASDAQ Global Select — Savara Inc.
Healthcare/Biotechnology · YTD: -0%
Market Cap: $530,609,590

A clinical-stage biopharmaceutical company focusing on rare respiratory diseases, shows promising development with its lead product candidate, molgramostim, in Phase III for treating autoimmune pulmonary alveolar proteinosis.

Recent presentations at the American Thoracic Society Conference underline molgramostim's potential to reduce surfactant burden and improve patient quality of life. Amidst volatile market conditions, Savara's targeted approach in a niche market alongside a solid financial outlook, exemplified by a recent non-dilutive financing deal up to $200M with Hercules Capital, positions it as a speculative yet intriguing investment opportunity.

$FISI ( ▲ 0.2% ) · NASDAQ Global Select — Financial Institutions, Inc.
Financial Services/Banks - Regional · YTD: +0.448%
Market Cap: $541,554,221

Financial Institutions, Inc. (FISI) presents a promising investment opportunity, having recently received an upgrade to a soft 'buy' from Seeking Alpha, indicating a positive outlook on its financial health. The bank has shown a robust balance sheet with an uptick in loans and deposits, alongside an improvement in asset quality.

Despite a dip in net interest income, net profits have leaped due to the absence of significant deposit-related charge-offs from the previous year. With its longstanding history since 1817 and a comprehensive range of banking and financial services, FISI is positioned for sustained growth.

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