Weekly Wins: Tariffs, Small-Caps, and Hunting for Powder

One of our strengths here at TheStreet Pro is our independence. 

Unlike analysts at the big banks, we’re not beholden to investment banking relationships, and we don’t have to cover securities that don't warrant attention.

Small Caps that Become Big Caps

A nice benefit is our ability to cover smaller names. Stephen "Sarge" Guilfoyle loves to write about small caps. And sometimes, those small caps become big caps ...like Palantir PLTR. Sarge has covered this stock since it was $6, around two years ago. Well, little Palantir has become a monster, touching $116 today.

In our latest Live Quarterly Meeting, we discussed the potential for small caps, in general, to outperform large caps in 2025. Louis Llanes cautioned that small caps are harder to index and we should pick select names. However, the indexes are still useful benchmarks, especially for performing analysis. And this chart from Kate Stalter's article, These 5 Top-Inflow ETFs Give Retirement Investors Some Small-Cap Exposure, shows how much stronger large caps have been than small caps. It’s a wide spread that could use narrowing.

James “Rev Shark” DePorre takes us to school for this small-cap name in Small-Cap Outperformance Continues and I Believe This Name Is a Gamechanger.

The big topic this week was the economy. Specifically, tariffs.

In our Pro Portfolio, Chris Versace said that We’re adding back these two etfs to the portfolio amid uncertainty. Chris expects tariffs to be among the reasons that volatility increases in 2025 and these holdings should help to mute the impacts.

Our sister site, TheStreet, interviewed an economist who says Tariffs likely won’t lead to higher prices. Though, they are a threat to the stock market.

Friday saw the release of the Non-Farm Payrolls, which were lighter than expected, at least in the headline number. Peter Tchir questions the entire report, however, and wonders what do you do with jobs data you just don’t trust?

It’s the weekend and it's time to take a little break from the markets. Ed Ponsi wants to remind us that this popular music streaming service gets little attention, even though its stock price is as strong as Palantir. It’s been a big winner since he wrote about it and Ed wants to know where’s the love for this similarly impressive name?

There’s lots happening around the Arena and I’d like to share a few of my favorite articles from this week:

Our friends at Autoblog write that BMW’s new M3 wagon is forbidden fruit and won’t be coming to the US. If you’re like me, you’re upset about it, but you weren’t going to buy one anyway. I guess that we get the cars we deserve. Like the Cybertruck.

Also, if you’re like me, you spend way too much time looking at online car auctions. Did you know that the company that invented the category, Bring a Trailer, has broken $1b in sales for each of the last three years?

It’s true what they say. Hollywood stars are no different then you or me. While I’ve never lost $150 million like Nicolas Cage, he and I do have some major problems with AI, especially when it comes to AI-generated entertainment.

Ernest Hemingway said that there are only three sports, car racing, mountaineering, and bullfighting. The rest are merely games. Well, I love to race cars but I think the rest of the country will be excited about a big game happening this weekend. There will be lots of coverage on our sister site: Athlon Sports.

Last, since it’s ski season and I’ll be hunting for powder this weekend, I’ll leave you with this dreamy photo essay from Powder.com on Six Days in Alaska's Takhinsha Mountains.

Have a great weekend!