40% of Russell 2000 companies are unprofitable but their stock outperforms—and ‘the bubble could continue,’ one analyst says

FortuneTuesday, October 21, 2025 at 11:46:46 AM
40% of Russell 2000 companies are unprofitable but their stock outperforms—and ‘the bubble could continue,’ one analyst says
Despite 40% of Russell 2000 companies being unprofitable, their stocks are outperforming expectations, leading some analysts to suggest that the market may be in a bubble reminiscent of 1999. This situation raises questions about the sustainability of such performance and what it means for investors moving forward.
— Curated by the World Pulse Now AI Editorial System

Was this article worth reading? Share it

Recommended Readings
The iPhone 17 is bringing Apple stock back to life—but Wall Street is worried about a catch
PositiveFinancial Markets
Apple's stock has seen a significant boost, climbing nearly 4% to around $262, surpassing its previous all-time high of $259 from last December. This surge is largely attributed to the excitement surrounding the iPhone 17, which has investors optimistic about the company's future. However, Wall Street remains cautious, hinting at potential concerns that could affect this upward trend. Understanding these dynamics is crucial for investors as they navigate the tech market.
Jefferies’ Fund Boasted Perfect Record Before First Brands Crash
NegativeFinancial Markets
Jefferies' fund, known for its impressive track record of 100% positive months, faced a significant setback with the recent crash of First Brands. This news is crucial as it highlights the volatility in investment markets, reminding investors that even the most successful funds can encounter unexpected challenges.
BlackRock Is Pulling Bitcoin Whales Into Wall Street’s Orbit
PositiveFinancial Markets
Big Bitcoin holders are making a significant shift by moving their wealth from the blockchain to Wall Street's balance sheets, a move that could enhance the legitimacy and integration of cryptocurrencies in traditional finance. This transition not only reflects growing confidence in Bitcoin but also signals a potential new era for digital assets as they gain traction among institutional investors.
Wall Street Banks Eye E-Trading Gains From New Europe Bond Rules
PositiveFinancial Markets
Wall Street's major banks are optimistic about new European bond market rules that could enhance the quality and availability of trading data. This shift is expected to drive significant growth in electronic trading, marking a pivotal moment for financial institutions looking to capitalize on technological advancements. As these changes unfold, they could reshape the landscape of bond trading in Europe, making it more accessible and efficient.
Selena Gomez's $2.7 Billion Revenge: How Rare Beauty Proved Hollywood—and Wall Street—Wrong
PositiveFinancial Markets
Selena Gomez's beauty brand, Rare Beauty, has achieved a remarkable valuation of $2.7 billion, defying skeptics in Hollywood and Wall Street. This success story highlights the brand's unique approach to beauty, focusing on authenticity and mental health, which resonates with consumers. Gomez's journey from a pop star to a successful entrepreneur showcases the power of personal branding and innovation in the beauty industry, making it a significant case study for aspiring business leaders.
Treasury 10-Year Yields May Hit 3.75% on Oil Slide, Yardeni Says
PositiveFinancial Markets
According to Ed Yardeni, a seasoned Wall Street analyst, the recent drop in oil prices could lead Treasury yields to reach levels not seen in over a year, specifically around 3.75%. This is significant as it reflects the interconnectedness of oil prices and government bond yields, potentially influencing investment strategies and economic forecasts.
Wall St ends sharply higher as earnings optimism fuels risk appetite
PositiveFinancial Markets
Wall Street closed sharply higher as optimism surrounding corporate earnings boosted investor confidence and risk appetite. This positive trend reflects a growing belief in the resilience of the economy, encouraging more investments in the stock market. As companies report better-than-expected earnings, it signals potential growth and stability, which is crucial for both investors and the overall market.
Asian Futures Buoyed by Wall Street Earnings Boost: Markets Wrap
PositiveFinancial Markets
Asian stocks are set to rise following a positive boost from Wall Street, where corporate earnings have exceeded expectations. This is significant as it reflects a potential recovery in global markets and suggests that easing tensions between the U.S. and China could further stabilize investor confidence. As these dynamics unfold, they could lead to increased investment and economic growth in the region.
Latest from Financial Markets
'Death of Cash Has Been Greatly Exaggerated': ACI Worldwide CEO
NeutralFinancial Markets
In a recent interview on 'Bloomberg Crypto', Thomas Warsop, the CEO of ACI Worldwide, discussed the evolving role of stablecoins in the payments landscape. He emphasized that while digital currencies are gaining traction, the traditional cash system is still very much alive and relevant. This conversation is significant as it highlights the balance between emerging financial technologies and established payment methods, providing insights into how businesses and consumers might navigate this changing environment.
Netflix, Comcast Eyeing Possible Warner Bros. Sale
PositiveFinancial Markets
Warner Bros. Discovery Inc. is exploring a potential sale after attracting interest from major players like Netflix and Comcast, leading to a notable 12% surge in its stock price. This move comes on the heels of Warner Bros.' decision to split into two distinct businesses, aiming to enhance the growth of its streaming division, which includes HBO Max, while separating from its traditional cable networks. This shift is significant as it reflects the ongoing transformation in the media landscape, where streaming services are becoming increasingly dominant.
Warner Bros. Discovery Says It Is Considering a Sale
NeutralFinancial Markets
Warner Bros. Discovery has announced that it is considering a potential sale, a move that could reshape the media landscape. This decision comes amid ongoing challenges in the industry, and it highlights the company's strategic reassessment of its future. The implications of such a sale could be significant, affecting not only the company's operations but also its audience and stakeholders.
Why Gold Has So Much Appeal in Uncertain Times
PositiveFinancial Markets
Gold has long been regarded as a safe haven during uncertain times, and its appeal continues to grow as political and economic instability looms. This precious metal's high value and portability make it a reliable asset for those seeking security when markets are volatile. Understanding why gold remains a favored choice can help investors navigate turbulent periods more effectively.
Beyond Meat shares soar on planned Walmart distribution
PositiveFinancial Markets
Beyond Meat's shares have surged following the announcement of a new distribution partnership with Walmart. This collaboration is significant as it expands Beyond Meat's reach to a wider audience, making plant-based options more accessible to consumers. The move reflects a growing trend towards healthier eating and sustainability, which is increasingly important to shoppers today.
Trump, Senate GOP Talk Shutdown at Rose Garden Lunch
NeutralFinancial Markets
In a recent Rose Garden lunch, former President Trump and Senate Republicans discussed the looming government shutdown. Wisconsin Rep. Bryan Steil emphasized that the House has fulfilled its responsibility by passing a clean continuing resolution, urging the Senate to follow suit despite facing filibuster challenges. This conversation highlights the ongoing tensions within the GOP and the critical need for bipartisan cooperation to prevent a shutdown that could impact many Americans.