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Unprofitable Russell 2000 Stocks Surge 60%, Outpacing Firms That Actually Earn Money
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Unprofitable Russell 2000 Stocks Surge 60%, Outpacing Firms That Actually Earn Money

Yahoo Finance · Jun 21, 2026, 9:32 PM

Key takeaways

  • The divergence has widened through mid-2026, prompting Apollo chief economist Torsten Slok to warn that the market has stopped pricing risk the way it once did.
  • Of the index s roughly 2,000 members, 806 carried negative trailing earnings late last year.
  • Slok first flagged it in November 2023, warning the loss-making firms would be vulnerable to high rates and slowing growth.

Unprofitable Russell 2000 Stocks Surge 60%, Outpacing Firms That Actually Earn Money Photo by Be In Crypto Lockridge Okoth Mon, June 22, 2026 at 4:32 AM GMT+7 2 min read ^RUT APO Unprofitable Russell 2000 stocks have climbed about 60% since April 2025, far outpacing the 38% gain for profitable small-cap firms, according to Apollo Global Management.

The divergence has widened through mid-2026, prompting Apollo chief economist Torsten Slok to warn that the market has stopped pricing risk the way it once did.

The split is stark. Of the index s roughly 2,000 members, 806 carried negative trailing earnings late last year. Another 1,120 were profitable, Apollo data showed.

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