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

(Credit: Andriy Onufriyenko—Getty Images)

• Nasdaq 100 futures held steady this morning after tech stocks neared record highs yesterday. Some analysts are worried there is a bubble in tech, as unprofitable small-cap tech companies are outperforming companies with actual profits on the Russell 2000. Valuations look frothy but could go higher if AI capex increases beyond its already high levels.

Nasdaq 100 futures are flat this morning, premarket, after the tech-heavy index rose a solid 1.3% yesterday, nearing its record high. By contrast, the broader S&P 500 index rose “only” 1%. The Nasdaq is up 20% year to date. (The S&P is up 14.5%.)