A muted trading persisted on the stock market on Tuesday, with major indices ending in the red, recording minimal losses while digesting President Donald Trump’s tariff policies.
The Dow Jones declined by 0.38 percent, the S&P 500 dipped by 0.17 percent, while the tech-heavy Nasdaq dipped by 0.05 percent.
Ten companies bucked a broader market pessimism, booking modest gains during the session. In this article, we have identified the reasons behind their gains.
To come up with the list, we only considered the stocks with $2 billion market capitalization and $5 million trading volume.
A man in a black suit holding a tablet looks at stock market data on a monitor. Photo by Tima Miroshnichenko on Pexels
10. Carvana Co. (NYSE:CVNA)
Shares of Carvana grew by 4.44 percent on Tuesday to close at $213.81 apiece as investor sentiment was fueled by an investment firm’s rating adjustment for the company.
In a market report on Monday, JMP Securities reduced its price target for CVNA to $275 from $340 previously but gave the company a Buy rating on the shares. The new price target represented a 28.6-percent upside from the company’s closing price on Tuesday.
According to JMP, its rating adjustment was based on CVNA’s bright business prospects, particularly stronger revenues and improved operating efficiency.
In recent news, CVNA announced plans to build a new mega-site in Arizona and generate as many as 200 jobs.
“The Phoenix area is home to our headquarters and a significant anchor for Carvana and ADESA operations, so we couldn’t be more excited to expand our local capabilities and team here,” said CVNA Senior Vice President for Inventory Brian Boyd. ”Bringing Carvana Inspection and Reconditioning Center capabilities to ADESA Phoenix will drive additional speed and selection for our local retail customers and an even more robust offering for our local wholesale customers while also creating new entry-level and skilled jobs in the Chandler community.”
9. Full Truck Alliance Co. Ltd (NYSE:YMM)
Full Truck Alliance grew its share prices by 4.67 percent on Tuesday to end at $10.32 apiece as investors shunned the company’s rating downgrade from an investment firm.
On Monday, JP Morgan downgraded its stock rating for YMM to Neutral from Overweight previously, as well as its price target to $10 from $18.
While YMM—a digital freight platform connecting shippers with truckers in China—is not directly impacted by the ongoing trade tensions between the US and China, it remains vulnerable to risks of reduced freight demand and domestic supply disruptions.
Last month, the company said that it was considering its public listing in Hong Kong to mitigate risks from the US-China trade tensions.
The company had initially planned a dual primary listing in Hong Kong in 2022 due to stricter audit requirements for US-listed Chinese firms but later axed the plan after the US audit said it gained full access to inspect and investigate firms in China for the first time ever.
8. Netflix Inc. (NASDAQ:NFLX)
Netflix grew its share prices for a second straight day, adding 4.83 percent to finish at $976.28 apiece as investors cheered news of its planned five-year expansion program.
A report by The Wall Street Journal said that NFLX plans to double its revenues to $78 billion by 2030 through a multi-pronged approach.
According to the report, NFLX is also working to boost subscriptions in its international markets, particularly Brazil and India.
NFLX ended last year with more than 301 million subscribers. It plans to expand its subscriber count to 410 million by the end of the decade.
The company also aims to generate $9 billion in ad sales in the next five years.
Netflix previously announced that its ad-supported tier had reached 70 million users.
7. Hewlett Packard Enterprise Company (NYSE:HPE)
Shares of Hewlett Packard grew for a third straight day on Tuesday, adding 5.11 percent to close at $15.01 apiece following news that hedge fund Elliott Investment Management acquired more than $1.5 billion in the company.
Elliott, one of the largest hedge funds, now ranks among the information technology company’s biggest investors and is working on an unidentified initiative amounting to $20 billion.
In the first quarter, Hewlett Packard Enterprise Company (NYSE:HPE) said net income attributable to shareholders rose by 54 percent to $598 million from $387 million in the same period a year earlier, as revenues rose 16 percent to $7.854 billion from $6.755 billion year-on-year.
Analysts expected the company to post $7.8 billion in revenues or $0.50 per share, as against Hewlett Packard Enterprise Company (NYSE:HPE)’s $0.49 recorded EPS.
Looking ahead, Hewlett Packard Enterprise Company (NYSE:HPE) estimates revenues to be in the range of $7.2 billion and $7.6 billion.
6. Trump Media & Technology Group Corp. (NASDAQ:DJT)
Trump Media saw its share prices grow for a third straight day on Tuesday, adding 5.44 percent to finish at $19.96 apiece following news that it joined forces with two investment firms to launch Truth Social-branded Separately Managed Accounts expected to “offer investors access to curated, thematic investment strategies rooted in American values and priorities.”
According to DJT, the lineup of portfolios will include strategies based on the themes of faith and values, liberty and security, energy independence, and made in America.
“We’re moving forward with a series of America First investment products that meet investors’ demand to support a wide range of outstanding, non-woke, and innovative companies across key sectors of the US economy,” said DJT CEO Devin Nunes in a statement.
DJT is partnering with Yorkville America Equities and Index Technologies Group for the launch of separately managed accounts.
Yorkville and ITG said that they will use “proprietary values-based metrics” to score and rank companies and will rebalance portfolios quarterly.
5. Under Armour Inc. (NYSE:UAA)
Under Armour jumped by 5.51 percent on Tuesday to finish at $5.74 apiece following news that infamous basketball player Stephen Curry will receive a $75 million stock grant from the company.
The contract, part of the long-term deal, is reportedly expected to cover the remainder of Curry’s basketball career and can become a lifetime deal, assuming certain conditions are met.
The stock award, around 8.8 million restricted stock units, reportedly will be made in two installments—in 2029 and 2034 as long as Curry remains with Under Armour.
The stock grant was on top of his direct payments from UAA, which reportedly amounts to eight figures annually, as well as the $215-million contract he currently holds with the Golden State Warriors.
In its latest earnings presentation, UAA’s net income for the quarter ending December 2024 fell by 99 percent to $1.2 million from the $110.75 million registered in the same period a year ago, as net revenues dropped 6 percent to $1.4 billion versus $1.49 billion year-on-year.
In the first nine months alone, UAA swung to a net loss of $133.8 million versus a $225-million net profit in the same period year-on-year as net revenues declined by 8.9 percent to $3.98 billion from $4.37 billion.
4. ADMA Biologics, Inc. (NASDAQ:ADMA)
ADMA Biologics rallied for a third straight day on Tuesday, adding 5.93 percent to end at $22.15 as investor sentiment was buoyed by its business optimism, saying it sees only minimal to no impact from the ongoing trade tensions globally.
In a statement earlier this week, ADMA President and CEO Adam Grossman underscored the company being a fully US-based firm, with manufacturing operations, market sales, and customer engagements conducted exclusively within the US.
“The tariffs that have been implemented on foreign goods, services, and manufacturing should have no impact on ADMA and its supply chain or production operations,” he said.
“Our strategic infrastructure not only ensures enhanced supply chain robustness, resilience, and regulatory compliance but also aligns with increasing federal and private sector preferences for US-made products and services,” he added.
ADMA Biologics is an end-to-end commercial biopharmaceutical company dedicated to manufacturing, marketing, and developing specialty biologics for treating immunodeficient patients at risk for infection and others at risk for certain infectious diseases.
3. Palantir Technologies Inc. (NASDAQ:PLTR)
Palantir Technologies jumped by 6.24 percent on Tuesday to finish at $98.40 apiece as investors cheered news of the company’s bagged deal with the NATO Communications and Information Agency (NCIA) to adopt its Maven Smart System for artificial intelligence-enabled battlefield operations.
Under the contract, the NCIA would utilize the AI system Maven Smart System to support the transatlantic military organization’s Allied Command Operations strategic command.
In a statement, NCIA General Manager Ludwig Decamps said that the deal was focused on “providing customized state-of-the-art AI capabilities to the Alliance, and empowering our forces with the tools required on the modern battlefield to operate effectively and decisively.”
2. Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC)
Ericsson rallied for a third consecutive day on Tuesday, adding 8.32 percent to finish at $8.07 apiece as investors cheered the company’s better-than-expected first-quarter earnings performance.
According to the Swedish telephone equipment maker, earnings per share stood at 1.24 Swedish kronor, up by 61 percent year-on-year and well above analysts’ estimates.
Revenues, however, inched up by 3 percent to 55 billion kronor but missed consensus.
According to ERIC, the better-than-expected profit was attributed to the 20-percent growth in sales, which it owed to “accelerated network investments.”
“In the evolving global trade landscape and macro volatility, we continue to focus on controlling what we can control and delivering to our customers,” CEO Borje Ekholm said. “We are not immune, but we are resilient, with well-diversified production close to the customer and the flexibility to adapt to changing conditions over time.”
1. Rocket Lab USA, Inc. (NASDAQ:RKLB)
Rocket Lab USA jumped by 10.14 percent on Tuesday to close at $21.07 apiece as investors cheered news that it was selected to participate in two multi-billion dollar government development programs in the US and the UK.
According to the company, it was chosen by the US Air Force to participate with its $46-billion Enterprise-Wide Agile Acquisition Contract (EWAAC) for the rapid acquisition of innovative technologies, engineering services, and technical solutions that develop the Air Force’s new capabilities. RKLB said the contract will end in 2031.
In the UK, RKLB was also selected by the UK’s Ministry of Defence for its £1 billion Hypersonic Technologies & Capability Development Framework for the development of advanced hypersonic capabilities for the UK.
“The ability to contribute toward the collective security of the United States and the United Kingdom across both of these important programs is a proud moment for the HASTE team and a demonstration of Rocket Lab’s commitment to lead from the front when it comes to innovative and unique solutions for hypersonic technology development,” said RKLB founder and CEO Peter Beck.
While we acknowledge the potential of RKLB as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than RKLB but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
