[Russell 2000 Index: Loss-making Small-Cap Stocks Up 154% Since Mid-2025, Profitable Companies Only Up 34%] BlockBeats News, July 16 — The Kobeissi Letter reported that companies in the Russell 2000 Index with negative earnings per share have cumulatively risen 154% since mid-2025, while companies with positive earnings per share have only increased by 34% during the same period. So far this year, non-profitable companies in the Russell 2000 Index have risen by 45%, outperforming the 18% gain of profitable companies. Driven by this, the Russell 2000 Index has increased by 20% year-to-date, potentially marking its best annual performance since 2003. Meanwhile, the S&P 500 Index has risen by 11%, and the U.S. tech 'Big Seven' have only gained 4%. The strongest-performing small-cap stocks are primarily tech and infrastructure companies expected to benefit from AI-related spending. The market is rewarding AI-related exposure, regardless of whether the companies are profitable. [Original Link]