finance
Unprofitable Russell 2000 Companies Outperform Profitable Peers Since April 2025
@KobeissiLetter reported that small-cap companies with negative earnings have outpaced profitable peers and major indices since the April Iran-US ceasefire.
KO
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Russell 2000 companies reporting negative earnings per share have returned 60 percent since April 2025, according to data compiled by @KobeissiLetter. Companies in the same index with positive earnings per share gained 38 percent over the same period. The Russell 2000 index itself advanced 48 percent, placing it among the strongest-performing major equity benchmarks.
The S&P 500 rose 38 percent and the Nasdaq 100 climbed 58 percent during the interval. The gap widened after April 7, when an Iran-US ceasefire was announced. Investors moved into small-cap technology names, accelerating gains for unprofitable firms within the Russell 2000.
@KobeissiLetter reported that market participants are rewarding exposure to artificial-intelligence themes more than current profitability in the small-cap segment.
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CorroborationModerate · 1 source
