Loss making small cap stocks in the Russell 2000 Index rose 154%, while profitable companies rose 34%

According to The Kobeissi Letter, companies with negative earnings per share in the Russell 2000 Index have risen 154% since mid-2025, while companies with positive earnings per share have risen 34%. Since the beginning of this year, the Russell 2000 Index has seen a 45% increase in unprofitable companies and an 18% increase in profitable companies. The Russell 2000 Index rose 20% this year, the S&P 500 Index rose 11%, and the tech "Big Seven" rose 4%. The strongest performing small cap stocks are technology and infrastructure companies that are expected to benefit from AI spending.