S&P 500’s May Movers, $VRTS Investment Case, $APLD’s $7B Deal, and More
Welcome back to the BBAE Blog, your trusted source for the latest investment insights and analyses from the BBAE team. This week, we’re excited to share some highlights that will keep you informed and ahead of the market. Don’t forget, some of our most valuable insights are available exclusively in the BBAE Pro app—download it now to unlock full access!
- S&P 500: The Winners and Losers of May 2025
- Gator Capital: Virtus Investment ($VRTS) Investment Case
- Trending Tickers: $APLD Secures CoreWeave Lease, $TEM Unveils Cancer Test, $HIMS to Expand in Europe
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S&P 500: The Winners and Losers of May 2025
The S&P 500 rebounded strongly in May 2025, gaining 6.15% and nearing record highs after months of volatility earlier in the year. This article highlights the top winners—NRG Energy, Constellation Energy, and Seagate Technology—whose rallies were fueled by strong earnings, strategic acquisitions, and sector tailwinds, particularly around energy and AI infrastructure. On the flip side, UnitedHealth Group, Regeneron Pharmaceuticals, and Eli Lilly struggled, hit by earnings misses, leadership turmoil, regulatory setbacks, and rising competitive pressures. The breakdown offers insights into the key developments driving the best and worst performers of the month. Read the full article here.
Gator Capital: Virtus Investment ($VRTS) Investment Case
Gator Capital Management presents Virtus Investment Partners ($VRTS) as a compelling value opportunity within their Financials sector focus, despite the stock being among Q1 2025’s largest detractors. The multi-boutique investment manager trades at exceptionally attractive valuations of 6.5x P/E and 3.0x EV/EBITDA, supported by a high-quality business model featuring recurring revenue streams, strong free cash flow, and conservative debt levels of only 0.3x EBITDA. While $VRTS faces industry headwinds from the shift toward passive management and some past acquisition missteps, Gator highlights the company’s potential for earnings-accretive acquisitions, aggressive share repurchases (management bought back ~2% in Q1), and a 5.6% dividend yield. The firm encourages management to leverage up by 1.0x EBITDA to fund a substantial 30% share buyback, viewing current levels as presenting compelling risk-adjusted returns for patient investors willing to wait for either improved asset flows or decisive strategic action from management. Read the full article here.
Trending Tickers: $APLD Secures CoreWeave Lease, $TEM Unveils Cancer Test, $HIMS to Expand in Europe
This week, several companies made headlines with key strategic moves. Here’s a breakdown:
- Applied Digital ($APLD): Applied Digital secured a $7 billion, 15-year lease agreement with CoreWeave for its Ellendale, North Dakota data center campus, supporting CoreWeave’s AI and HPC infrastructure. The deal highlights Applied Digital’s expanding role in the AI-driven data center market.
- Tempus ($TEM): Tempus introduced xM for Treatment Response Monitoring (TRM), a new liquid biopsy assay designed to track cancer immunotherapy responses through circulating tumor DNA analysis. The launch targets improved early detection of treatment efficacy for patients with advanced cancers.
- Hims & Hers ($HIMS): Hims & Hers announced plans to acquire ZAVA, a European digital healthcare provider. The move supports the company’s international expansion strategy, aiming to extend its subscription-based personalized care model across the UK, Germany, France, and Ireland.
Read the full Weekly Highlights article here.
This article is for informational purposes only and is neither investment advice nor a solicitation to buy or sell securities. All investment involves inherent risks, including the total loss of principal, and past performance is not a guarantee of future results. Always conduct thorough research or consult with a financial expert before making any investment decisions. BBAE has no position in any investment mentioned.
