La vendita allo scoperto per Arrow Reserve Capital Management ETF dà agli investitori un'idea del grado in cui gli investitori stanno scommettendo sul declino delle azioni di Arrow Reserve Capital Management ETF. I dati relativi alle vendite allo scoperto vengono aggiornati ogni due settimane.

Arrow Reserve Capital Management ETF (BATS:ARCM), Report sulle vendite allo scoperto

Arrow Reserve Capital Management ETF

The Fund invests in a variety of domestic fixed income securities. The Fund invests in fixed income instruments with a dollar-weighted average effective maturity of 0 to 2 years issued by U.S. Dollar-denominated issuers, including mortgage- or asset-backed securities, rated Baa- or higher by Moodys Investors Service, Inc.(Moodys), or equivalently rated by Standard & Poors Ratings Services (S&P) or Fitch, Inc.(Fitch), or, if unrated, determined by the Funds sub-advisor to be of comparable quality. The Fund may also invest in interest rate futures and forwards. The Funds investments in interest rate futures and forward contracts attempt to gain exposure to a particular group of securities or asset class without actually purchasing those securities or investments, or to hedge interest rate risk.

WIIM

FSTR

L.B. Foster shares are trading lower after the company reported worse-than-expected Q1 financial results.

<a href="https://www.youtube.com/live/hyAdEROpMU8">https://www.youtube.com/live/hyAdEROpMU8</a>

Macro Economic Events

News

Politics

Economics

General

U.S. Treasury's Bessent Says We Are Trying To Control Absolute Level Of Debt And Grow GDP, Agrees With Yellen That Debt-To-GDP Ratio Is What Matters

Hims &amp; Hers Health, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HIMS#NYSE">HIMS</a>) stock traded higher Tuesday despite initially dropping after the company reported <a href="https://www.benzinga.com//node/45208186">first-quarter earnings.</a>
What To Know: The company reported earnings per share of 20 cents, beating the consensus estimate of 12 cents. In addition, the company reported sales of $586.01 million, beating the consensus estimate of $538.20 million and representing a 111% year-over-year increase.
Hims reported that subscribers increased 38% year-over-year to 2.4 million.
&#8220;We&#8217;re starting 2025 with incredible momentum. Millions of people are turning to us for access to care that is personal, affordable, and has the potential to drive better outcomes,&#8221; said Andrew Dudum, co-founder and CEO.
Outlook: The company sees second-quarter sales from $530 million to $550 million, versus the consensus estimate of $564.56 million. For fiscal-year 2025, the company expects sales from $2.30 billion to $2.40 billion, versus the consensus estimate of $2.32 billion.
See Also: <a href="https://www.benzinga.com/markets/futures/25/05/45220427/cathie-wood-bucks-consensus-predicts-economic-boom-and-broad-bull-market-the-opportunity-is-now">Cathie Wood Bucks Consensus, Predicts Economic Boom And Broad Bull Market: &#8216;The Opportunity Is Now&#8217;</a>
HIMS Price Action: At the time of writing, Hims stock is trading 11.3% higher at $46.60, per data from <a href="https://www.benzinga.com/pro/">Benzinga Pro.</a>
Image: via Shutterstock

Movers

Hims & Hers Health, Inc. Class A Common Stock

HIMS

What's Going On With Hims & Hers Stock Tuesday?

GoDaddy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDDY#NYSE">GDDY</a>) has outperformed the market over the past 10 years by 10.92% on an annualized basis producing an average annual return of 21.24%. Currently, GoDaddy has a market capitalization of $25.37 billion. 
Buying $1000 In GDDY: If an investor had bought $1000 of GDDY stock 10 years ago, it would be worth $7,152.06 today based on a price of $183.66 for GDDY at the time of writing.
<h3>GoDaddy's Performance Over Last 10 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1746544517_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Trading Ideas

GDDY

Here's How Much You Would Have Made Owning GoDaddy Stock In The Last 10 Years

<figure class="wp-block-image size-large"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2025/05/2025-05-06_08h10_55.png" alt="" /></figure>
To gain an edge, this is what you need to know today.
<h4 class="wp-block-heading">Reaction Of Overbought Market</h4>
Please <a href="https://thearorareport.com/stock-market-chart-analysis-overbought-stock-market-uber-bullishness-spy-mc-05062025">click here</a> for an enlarged chart of SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) which represents the benchmark stock market index S&amp;P 500 (SPX).
Note the following:
<ul>
<li>The chart shows the stock market was near the low band of support zone 3.</li>
<li>The chart shows our buy signals near the April lows.</li>
<li>The chart shows the stock market ran up to the top band of resistance zone 2.</li>
<li>The chart shows our signal to take partial profits.</li>
<li>The chart shows that the stock market has pulled back from the top band of resistance zone 2 as of this writing in the premarket.</li>
<li>The chart shows low volume yesterday, which indicates there is not a lot of conviction in the pullback.</li>
<li>As a reader of our report, you already knew in advance that a pullback was likely. On Friday, when RSI reached 100, we shared with you:</li>
</ul>
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">RSI on the chart indicates that the market is extremely overbought.&nbsp; Overbought markets tend to pullback.
</blockquote>
<ul>
<li>The market became extremely overbought due to the recent uber bullishness. <a href="https://www.benzinga.com/markets/equities/25/05/45197282/book-more-profits-buffetts-company-reports-worst-earnings-drop-since-2020-opec-surprise">Yesterday</a>, we wrote:</li>
</ul>
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">History tells us that the uber bullishness of the last nine days does not always work out well.  For this reason, our call is to take more partial profits on tactical positions started near the April lows.
</blockquote>
<ul>
<li>The chart shows that even though RSI has pulled back, the stock market is still overbought.</li>
<li>Prudent investors should note that our charts use optimized RSI settings for the current market.  The traditional settings that most investors use no longer work well.  </li>
<li>The trade imbalance came at -$140.5B vs. -$127.5B consensus.  In our analysis, the worsening trade imbalance is due to the rush to import ahead of tariffs.</li>
<li>Prudent investors should pay attention to what is happening to currencies in Asia. The dollar has been the anchor for Asian currencies.  Until yesterday, the expectation was that the dollar would continue to be the anchor of Asian currencies.  In a surprise move today, China moved to make the yuan the anchor for Asian currencies.  In our analysis, if China is successful, this will be the start of a negative long term development for the U.S.</li>
<li>In a shock from Germany, Friedrich Merz did not get the first parliamentary vote to become chancellor.&nbsp; This development is adding to negativity in the stock market this morning as it indicates less stability in Germany.&nbsp; In post World War history, Merz is the first would-be-chancellor to not win the first parliamentary vote.</li>
<li>The FOMC meeting starts today.&nbsp; The Fed will announce its interest rate decision tomorrow at 2pm ET, followed by a press conference from Fed Chair Powell at 2:30pm ET.</li>
</ul>
<h4 class="wp-block-heading">Magnificent Seven Money Flows</h4>
In the early trade, money flows are negative in Apple Inc (AAPL), Amazon.com, Inc. (AMZN), Alphabet Inc Class C (GOOG), Meta Platforms Inc (META), Microsoft Corp (MSFT), NVIDIA Corp (NVDA), and Tesla Inc (TSLA).
In the early trade, money flows are negative in S&amp;P 500 ETF (SPY) and Invesco QQQ Trust Series 1 (QQQ).
<h4 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h4>
Investors can gain an edge by knowing money flows in SPY and QQQ.  Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.  The most popular ETF for gold is SPDR Gold Trust (GLD).  The most popular ETF for silver is iShares Silver Trust (SLV).  The most popular ETF for oil is United States Oil ETF (USO).
<h4 class="wp-block-heading">Bitcoin</h4>
Bitcoin is seeing selling.
<h4 class="wp-block-heading">Arora Protection Band And What To Do Now</h4>
It is important for investors to look ahead and not in the rearview mirror.  Our proprietary Protection Band puts all of the data, all of the indicators, all of the news, all of the crosscurrents, all of the models, and all of the analysis in an analytical framework that is easily actionable by investors.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp; The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp; If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h4 class="wp-block-heading">Traditional 60/40 Portfolio</h4>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.

Equities

Long Ideas

Market Summary

Global

Opinion

Markets

ETFs

Overbought Stock Market Reacts To Uber Bullishness, Important China Move, And Shock From Germany

UWMC

UWM Holdings shares are trading lower after the company reported worse-than-expected Q1 EPS results.

Pediatrix Medical Group shares are trading higher after the company reported a Q1 adjusted EPS and revenue beat.

President Donald Trump on Sunday announced his intention to reconstruct and reopen Alcatraz, the infamous former prison on an island in San Francisco Bay, as a functioning maximum-security facility for &#8220;America's most ruthless<a href="https://www.benzinga.com/markets/equities/25/05/45217098/trumps-big-beautiful-bill-takes-shape-gop-pushes-tax-cuts-border-wall-funding-and-deep-spending-reductions-ahead-of-memorial-day-deadline"> and violent offenders.&#8221;&nbsp;</a>
What To Know: Trump described the move as a symbol of &#8220;Law, Order, and Justice&#8221; in a post on Truth Social and suggested the prison would be significantly expanded and modernized to accommodate the most dangerous criminals.
Read Next: <a href="https://www.benzinga.com/news/management/25/05/45180224/these-ev-makers-could-shine-if-musk-leaves-tesla?utm_source=articleShare">These EV Makers Could Shine If Musk Leaves Tesla&nbsp;</a>
Alcatraz operated as a federal penitentiary from 1934 to 1963 and housed notorious criminals like Al Capone and George &#8220;Machine Gun&#8221; Kelly. The prison was closed due to high operational costs, deteriorating infrastructure and logistical challenges. 
Everything, including food, fuel and water, had to be shipped by boat, making it nearly three times more expensive to run than other federal prisons. 
John Martini, an expert on Alcatraz history who served as a park ranger on the island, <a href="https://www.sfchronicle.com/sf/article/alcatraz-trump-prison-reopen-reaction-20309745.php">told</a> the San Francisco Chronicle that it would be impossible to reopen the prison because the building is "totally inoperable," with no water or sewage, and electricity only in certain parts.
"If the discussion is to rebuild the prison building to hold people, I don't think that would be feasible," Martini said. "It would have to be torn down and rebuilt."
What's Next: Reopening Alcatraz as a federal prison would require a major federal investment, with upfront costs likely in the hundreds of millions and ongoing annual expenses far exceeding those of typical mainland prison.&nbsp;
Large-scale construction and infrastructure consultants like AECOM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACM#NYSE">ACM</a>) and Fluor Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLR#NYSE">FLR</a>) that specialize in government infrastructure and complex restoration projects would likely be essential for rebuilding Alcatraz.&nbsp;
Private prison firms including Geo Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEO#NYSE">GEO</a>) and CoreCivic, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CWX#NYSE">CWX</a>) could also be called upon to operate the location once restoration is complete.&nbsp;
A rebuilt Alcatraz prison would also need security, communications and surveillance solutions from providers who specialize in public safety and correctional facilities like Axon Enterprise, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AXON#NASDAQ">AXON</a>) and Motorola Solutions, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSI#NYSE">MSI</a>).&nbsp;&nbsp;
Details of the plan to reopen Alcatraz remain unclear, including proposed costs or a timeline for expanding and opening the facility. However, the Bureau of Prisons, Justice Department, FBI and Homeland Security are expected to work on the project.
Read Next:&nbsp;
<ul>
<li><a href="https://www.benzinga.com/news/earnings/25/05/45194998/saudi-arabias-oil-power-play-jolts-markets-can-diamondback-and-rivals-survive-the-squeeze?utm_source=articleShare">Saudi Arabia&#8217;s Oil Power Play Jolts Markets: Can Diamondback And Rivals Survive The Squeeze?</a></li>
</ul>
Image: Shutterstock

Legal

AXON

President Trump Wants To Reopen Alcatraz: Here's What It Would Take

TLSA

Tiziana Life Sciences shares are trading higher after the company announced results from an open-label clinical study evaluating nasal foralumab.

Pasithea Therapeutics, Corp. ("Pasithea," or the "Company") (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTTA#NASDAQ">KTTA</a>, KTTAW))), a clinical-stage biotechnology company developing PAS-004, a next-generation macrocyclic MEK inhibitor, for the treatment of neurofibromatosis type 1 (NF1) and other cancer indications, today announced the pricing of a public offering of 3,571,428 shares of the Company's common stock (or pre-funded warrants in lieu thereof) and accompanying Series C warrants to purchase up to 3,571,428 shares of common stock and Series D warrants to purchase up to 3,571,428 shares of common stock, at a combined offering price of $1.40 per share of common stock (or per pre-funded warrant in lieu thereof) and accompanying warrants.
The Series C common warrants will have an exercise price of $1.40 per share and will be exercisable upon issuance and will expire five years thereafter. The Series D common warrants will have an exercise price of $1.40 per share and will be exercisable upon issuance and will expire 18 months thereafter. The closing of the offering is expected to occur on or about May 7, 2025, subject to the satisfaction of customary closing conditions.
H.C. Wainwright &amp; Co. is acting as the exclusive placement agent for the offering.

Offerings

KTTA

Pasithea Therapeutics Announces Pricing Of $5M Public Offering Of 3,571,428 Shares Of Common Stock And Accompanying Series C Warrants To Purchase Up To 3,571,428 Shares Of Common Stock And Series D Warrants To Purchase Up To 3,571,428 Shares Of Common Stock, At A Combined Offering Price Of $1.40

PLOW

Douglas Dynamics shares are trading higher after the company reported better-than-expected Q1 financial results.

A previously overlooked stake once tied to the collapsed crypto exchange FTX may now be worth roughly $500 million, following a sharp rise in valuation at one of <a href="https://www.benzinga.com/money/how-to-invest-in-ai-startups">Silicon Valley's hottest AI startups</a>.
What Happened: Anysphere, the company behind the AI-powered code-writing assistant Cursor, has raised $900 million in new funding, tripling its valuation to $9 billion, Financial Times <a href="https://www.ft.com/content/a7b34d53-a844-4e69-a55c-b9dee9a97dd2">reported</a>.
This surge comes just months after FTX creditors offloaded their equity interest in Anysphere for only $200,000, according to a person familiar with the matter.
The massive valuation jump underlines just how costly distressed asset sales can be — and how rapidly AI start-ups are inflating in value. 
The new round was led by Thrive Capital, a backer of OpenAI, with participation from Andreessen Horowitz and Accel, according to people close to the deal.
Founded in 2022 by MIT alumni, Anysphere was last valued at $2.5 billion in January, when it raised $105 million from many of the same investors. 
Its flagship product, Cursor, has become popular with software engineers for enabling natural language-based coding and suggesting near-complete code blocks, often replacing manual development work.
Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45222346/florida-presses-pause-on-bitcoin-reserve-bill-heres-what-happened">Florida Presses Pause On Bitcoin Reserve Bill: Here&#8217;s What Happened</a>
The company reportedly reached $200 million in annual recurring revenue by April, making it one of the fastest-growing software firms in the space. 
Cursor is already used by developers at major tech companies including OpenAI, Stripe and Spotify.
Anysphere's rise comes amid broader investor enthusiasm for AI application developers, who are attracting attention now that valuations for foundational model builders like OpenAI and Anthropic have soared beyond the reach of most investors. 
According to Dealroom.co, AI application start-ups attracted $8.2 billion in funding in 2024, more than double the previous year.
What&#8217;s Next: The dramatic revaluation of Anysphere also spotlights a growing concern among some venture capitalists: that rapid revenue growth may stem more from short-term AI experimentation than from long-term, durable enterprise adoption.
Cursor, which Anysphere claims powers close to a billion lines of code daily, competes with offerings such as GitHub Copilot and has gained attention from high-profile technologists like Andrej Karpathy, who described using Cursor as entering a "vibe coding" trance.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45219180/etoro-eyes-5b-valuation-in-nasdaq-ipo-sets-price-range-at-4650-per-share">eToro Eyes $5B Valuation In Nasdaq IPO, Sets Price Range At $46–$50 Per Share</a></li>
</ul>
Image: Shutterstock

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

FTX Creditors Sold Potential $500M Anysphere Stake For $200,000 Before Startup's Valuation Tripled

C3.ai Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AI#NYSE">AI</a>) shares fell 2% to $21.55 on Tuesday following Palantir Technologies Inc&#8217;s first-quarter <a href="https://www.benzinga.com/news/earnings/25/05/45208000/palantir-q1-earnings-revenue-beat-eps-in-line-customer-count-up-39-company-raises-guidance-citing-surging-and-ferocious-growth">earnings</a> release, which triggered a 14.3% decline in Palantir's stock despite strong performance metrics. 
Investors appear to be reassessing valuations across AI-focused software companies, including C3.ai, amid heightened expectations and aggressive growth guidance from larger peers like Palantir.
What To Know: C3.ai, a software company specializing in enterprise AI applications, faces investor scrutiny as Palantir continues to dominate the AI-driven enterprise software space. 
While Palantir <a href="https://www.benzinga.com/news/earnings/25/05/45208000/palantir-q1-earnings-revenue-beat-eps-in-line-customer-count-up-39-company-raises-guidance-citing-surging-and-ferocious-growth">beat revenue estimates</a> and raised its full-year guidance, its steep selloff suggests that even outperforming companies in the AI sector are vulnerable to high valuation concerns and pressure to sustain rapid growth.
Palantir's strong U.S. commercial revenue growth of 71% and robust deal flow underscore rising competition in AI software adoption. 
As a smaller player in the space, C3.ai may be struggling to justify its own growth prospects in comparison, prompting a modest stock decline as markets digest the implications of Palantir's dominant market position and forward-looking outlook.
Read Also: <a href="https://www.benzinga.com/25/05/45213810/palantir-stock-drops-925-after-earnings-beat-dan-ives-stays-bullish-but-jefferies-brent-thill-says-institutions-still-arent-interested">Palantir Is A &#8216;Retail-Driven Story,&#8217; Says Top Analyst As PLTR Stock Falls 9% In After-Hours: &#8216;Not A Single Institutional Investor&#8230;Talks About This&#8217;</a>
<h2 class="wp-block-heading">How To Buy AI Stock</h2>
By now you're likely curious about how to participate in the market for C3.ai &#8211; be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of <a href="https://www.benzinga.com/money/best-stock-trading-platforms">possible trading platforms here.</a> Many will allow you to buy &#8220;fractional shares,&#8221; which allows you to own portions of stock without buying an entire share.
In the case of C3.ai, which is trading at $21.38 as of publishing time, $100 would buy you 4.68 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to &#8220;go short&#8221; a share of stock by lending you the shares to sell. The process of shorting a <a href="https://www.benzinga.com/money/how-to-short-a-stock">stock can be found at this resource.</a> Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading &#8211; either way it allows you to profit off of the share price decline.
According to data from <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>, AI has a 52-week high of $45.08 and a 52-week low of $17.03.

C3.ai Stock Dips Following Palantir Technologies Earnings: What's Going On?

RLAY

Relay Therapeutics shares are trading lower following Q1 reported financial results.

BEAM

Beam Therapeutics shares are trading lower following a Q1 EPS and revenue miss.

UNIT

Uniti Group shares are trading lower after the company reported worse-than-expected Q1 sales results and cut its FY25 FFO guidance.

AVNS

Avanos Medical shares are trading higher after the company reported better-than-expected Q1 financial results.

<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="900" height="600" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/06090719/Newborn-Town.jpeg" alt="" class="wp-image-12372" style="width:920px;height:auto" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/06090719/Newborn-Town.jpeg 900w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/06090719/Newborn-Town-300x200.jpeg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/06090719/Newborn-Town-768x512.jpeg 768w" sizes="(max-width: 900px) 100vw, 900px" /></figure>
The Middle East-focused social media operator performed strongly in the first quarter, as its stock has been on a recent roll
<h4 class="wp-block-heading">Key Takeaways:</h4>
<ul>
<li>Newborn Town's social networking revenue rose 40% year-on-year in the first quarter</li>
<li>Cumulative downloads of its social networking apps jumped 26% in the quarter from a year earlier</li>
</ul>
The tsunami unleashed by U.S. President Donald Trump's trade war has hammered global stock markets, including Hong Kong, whose benchmark Hang Seng Index plummeted last month as Chinese stocks took a bath. But as most tickers got pummeled,&nbsp;Newborn Town Inc.&nbsp;(9911.HK), sometimes called the "Tinder of the Middle East,' not only avoided the bloodbath, but saw its stock surge to new highs.
Newborn Town may not be a household name to ordinary Hong Kongers, but its social media apps are all the rage in the Middle East and North Africa (MENA). Those include names like its MICO platform for livestreaming, YoHo for audio social networking, TopTop for gamers and SUGO for lonely hearts in search of companionship. Most recently it rolled out its HeeSay social media app for the LGBTQ community last year.
The company's geographic focus makes it well positioned to withstand the raging trade war, reflected in its recently announced&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0424/2025042400399.pdf">first-quarter update</a>&nbsp;that showed a company with strong momentum. Cumulative downloads of its social networking apps totaled about 820 million by the end of the quarter, up 26% year-on-year, as it logged 32.84 million average monthly users during the period, up 15% from a year earlier.
Revenue from its social networking business reached between 1.35 billion yuan ($185 million) and 1.4 billion yuan during the quarter, up as much as 44% year-on-year. Its innovative businesses did even better, growing up to 88% year-on-year to between 155 million yuan and 175 million yuan, albeit off a much smaller base.&nbsp;
Newborn Town's stock rallied 5.1% after the quarterly update's release. The shares have doubled since the start of the year, easily beating the broader market. They held up even after Donald Trump's trade war began in early April, and rose 39% for the month.
<h4 class="wp-block-heading">Trade war safe haven</h4>
The company has a number of factors going for it during the global trade war originating in the U.S. For starters, many investors may believe its positioning in the social networking and gaming spaces makes it less vulnerable to the impact of rising tariffs. Geographically speaking, the company's focus on the MENA region is far from other places like China, Europe and Canada that are most in Donald Trump's crosshairs. Finally, the company has steered clear of the kinds of data security concerns plaguing TikTok and other Chinese companies with large amounts of offshore user data. All of those factors have allowed Newborn Town to stay above the fray despite its Chinese roots.
That status has lured investors, who are looking for such safe havens to park their funds as they flee more vulnerable stocks. The company's impressive performance and rising profits over the past few years have further underscored its relative resilience in the face of all the turbulence around it.
Newborn Town has been on a winning streak for most of the time since its IPO in 2019. Its one bad year, at least in terms of its bottom line, came in 2021 when it registered a loss of 390 million yuan. But even that was unrelated to its actual business and instead was the result of equity-based compensation expenses that rose by 651 million yuan.
The company logged profits of 130 million yuan and 510 million yuan in 2022 and 2023, respectively. The figure fell 6.3% to 480 million yuan last year, but even that was due to a high base the previous year when it recorded one-off gains from asset sales. Excluding those gains, its profit would have risen 30% last year.
<h4 class="wp-block-heading">Stock Connect candidate</h4>
The stock may also be getting a boost from its solid chances of being included in the Stock Connect program that makes Hong Kong-listed shares available to Mainland China-based buyers in Shanghai and Shenzhen. To be eligible for inclusion in the program, Hong Kong-listed companies must be component stocks in the Hang Seng, Hang Seng Composite MidCap or Hang Seng Composite SmallCap indexes, and have a market cap of at least HK$5 billion ($688 million).
Given its current size and market cap of more than HK$10 billion, along with high trading volume in its shares, the company could quite possibly be included in the Hang Seng Composite SmallCap Index first. From there it could be admitted into the Stock Connect program, which could further boost its shares as Shanghai- and Shenzhen-based investors pile in.
Second growth curve
Newborn Town is also on the prowl for its next big growth engine, which it thinks it may have found in the development of high-quality games. It earned 460 million yuan from such games last year, up 21.3% from 2023. The company says that quality is a top priority in its gaming business, and it pursues a strategy of developing evergreen games that generate good user experience and have long life cycles. Its "Alice's Dream: Merge Games" has made it onto Sensor Tower's list of top 30 Chinese mobile for overseas markets several times.
Its base now established in the Middle East, the company is also eying the more competitive European and Japanese markets. Senior vice president and senior company secretary Song Mingliang has told media Newborn Town is on the hunt for M&amp;A opportunities in those two markets to keep its revenue growing at a steady clip. He stressed that existing mobile internet operators in those markets have failed to provide users with more emotional value so far, leaving an opening for the likes of Newborn Town.
The company's booming shares may have delighted investors, but the rally has also raised the very real risk of a correction. The stock now trades a relatively frothy price-to-earnings (P/E) ratio of 22 times, which is well ahead of global leader&nbsp;Match Group's&nbsp;(MTCH.US) 15 times and more than double the 9.5 for the similar-sized&nbsp;Yalla&nbsp;(YALA.US), which also focuses on the MENA region. At such elevated levels, investors might want to exercise extra caution before jumping on to Newborn Town's strong growth story.

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