Data Center Stock Uploads 169% Spike

Author

Adam Garcia
May 05, 2025

An alternative asset firm delivered a 40% income jump, an engine manufacturer withdrew its full-year guidance due to tariff uncertainty, and an AI data center firm is rocketing 169% on strong earnings projections. Here’s what’s moving the markets today.

Energy Shift (Sponsored)

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*Examples that we provide of share price increases pertaining to a particular Issuer from one referenced date to another represent an arbitrarily chosen time period and are no indication whatsoever of future stock prices for that Issuer and are of no predictive value. Our stock profiles are intended to highlight certain companies for YOUR further investigation; they are NOT stock recommendations or constitute an offer or sale of the referenced securities.

Futures 📈

What to Watch

Earnings:

  • Palantir Technologies Inc. [PLTR]: Aftermarket

  • Vertex Pharmaceuticals Incorporated [VRTX]: Aftermarket

  • Williams Companies, Inc. (The) [WMB]: Aftermarket

  • CRH PLC [CRH]: Aftermarket

  • Realty Income Corporation [O]: Aftermarket

Economic Reports:

  • S&P final U.S. services PMI [April]: 9:45 AM

  • ISM services [April]: 10:00 AM

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Alternative Investment Management

ARES Posts 40% Income Growth as Acquisitions and Fundraising Fuel Expansion

ARES Management (NYSE: ARES) reported a strong start to 2025, with its first-quarter results reflecting robust growth across core performance indicators, powered by new capital, acquisitions, and ongoing momentum in alternative credit strategies.

The company’s assets under management (AUM) rose to $545.9 billion, up nearly 28% year-over-year, with $45.3 billion added from the March acquisition of GCP International (excluding Greater China).

Fee-paying AUM hit $335.1 billion, and perpetual capital surged to $154.8 billion—up more than 40% from the prior year—highlighting the firm’s emphasis on stable, long-term capital sources.

Realized income climbed 40% from Q1 2024 to $381.4 million, or $1.09 per share, while GAAP net income reached $47.2 million.

The company declared a quarterly dividend of $1.12 per share. Fee-related earnings are up over 21% to $367.3 million, with management fees increasing 18% to $818.4 million.

Strong segment results are led by the Credit Group, which earned $431.9 million in realized income. Shares of ARES are currently up 0.66% in premarket trading.

Engines

Cummins Revenue Dips as Power Systems Shine and Tariff Concerns Cloud Outlook

Cummins (NYSE: CMI) delivered solid first-quarter 2025 results, buoyed by standout performance in its Power Systems division, even as overall revenue is down and the company has pulled its full-year guidance due to macroeconomic headwinds.

The company reported revenue of $8.2 billion, down 3% from the same period last year. Net income came in at $824 million, translating to $5.96 per diluted share.

While earnings were significantly lower than the prior year—when results were boosted by a one-time $1.3 billion gain from the separation of Atmus—core profitability remained strong, with EBITDA at 17.9% of sales.

CEO Jennifer Rumsey cited rising economic uncertainty and tariffs as reasons for withholding a full-year forecast, though she reaffirmed confidence in Cummins' long-term direction and its Destination Zero strategy.

The Power Systems segment led growth with a 19% revenue increase, driven by surging demand in the data center sector.

Distribution also saw a 15% rise in sales, while the Engine and Components divisions reported declines of 5% and 20%, respectively, due in part to lower on-highway demand and the Atmus spin-off.

In product developments, Cummins launched the next-generation X10 and B7.2 diesel engines and expanded its clean energy portfolio by acquiring hybrid tech from First Mode and securing a major hydrogen electrolyzer deal with BP in Germany.

Cummins’ stock is down 0.62% in premarket trade.

Uranium Demand (Sponsored)

On Behalf of Azincourt Energy Corp

With AI pushing power demand through the roof, nuclear is the only option.

Uranium demand is set to double. One junior may benefit most.

*Examples that we provide of share price increases pertaining to a particular Issuer from one referenced date to another represent an arbitrarily chosen time period and are no indication whatsoever of future stock prices for that Issuer and are of no predictive value. Our stock profiles are intended to highlight certain companies for YOUR further investigation; they are NOT stock recommendations or constitute an offer or sale of the referenced securities.

Immunotherapy

BioNTech Revenue Falls Short as Vaccine Demand Slows, Oncology Spending Rises

BioNTech (NASDAQ: BNTX) reported its first-quarter 2025 results today, revealing weaker-than-expected revenue but a smaller loss than analysts had projected, as the company shifts focus toward advancing its cancer treatments.

The German biotech firm generated €182.8 million ($195.5 million) in revenue for the quarter, missing the €204.08 million ($218.3 million) analyst consensus.

This marks a modest decline from the €187.6 million (approx. $200.6 million) posted a year earlier, largely due to reduced demand for its COVID-19 vaccine products.

Despite the revenue miss, the company reported a per-share loss of €1.73 ($1.85), outperforming the expected €2.00 ($2.14) loss.

Still, the overall net loss widened to €415.8 million ($444.4 million) from €315.1 million ($336.5 million) in Q1 2024, reflecting increased investment in research and development, particularly in its oncology pipeline.

Chief Financial Officer Jens Holstein noted that the seasonal nature of COVID-related revenue was anticipated, and full-year guidance remains unchanged at €1.7 to €2.2 billion (approx. $1.82 to $2.35 billion).

CEO Ugur Sahin emphasized BioNTech’s strategic pivot toward cancer research, highlighting progress in trials for its PD-L1xVEGF-A bispecific antibody and other targeted therapies.

Shares are down 0.42% in premarket trading following the report.

Movers and Shakers

Howard Hughes Holdings Inc. [HHH] - Last Close: $67.47

Howard Hughes Holdings Inc. is a real estate development and management company with a track record of solid revenues and net profit margins. Its stock has been down -12% YTD but overall it is 6% above last year.

The stock is seeing a 9% uptick in premarket trading after Pershing Square Capital Management announced that it would be investing $900 million in HHH by acquiring 9 million newly issued shares at $100 per share, a 48% premium over the previous closing.

My Take: The massive investment is a strong positive for Howard Hughes Holdings Inc. Given its solid track record, this could make HHH a good long-term prospect to look into.

Hyperscale Data, Inc. [GPUS] - Last Close: $1.37

Hyperscale Data, Inc., is a diversified holding company transitioning into an AI data center operator. Its revenues have been improving but the firm is struggling with achieving profitability, and its stock is down nearly 72% YTD.

Hyperscale Data's stock is up 169% in premarket trading due to the company's announcement of its preliminary Q1 2025 revenue surpassing $25 million and the projection of full-year revenue between $115 million and $125 million.

My Take: Hyperscale Data's projected revenue growth and divestiture of its non-core assets bode well for the firm. However, the decline in its stock value is a major red flag, so keep this on your wait and watch list for now.

BioCryst Pharmaceuticals, Inc. [BCRX] - Last Close: $8.93

BioCryst Pharmaceuticals, Inc., is a biotechnology company focused on developing oral therapies for rare diseases. The firm has been consistently growing revenue, and its stock is up 17% YTD.

BioCryst is up 16% in premarket trading after it announced a substantial increase in its full-year revenue guidance to $580–$600 million and the expectation to achieve profitability for the full year 2025—a year ahead of schedule. Additionally, BioCryst paid down $75 million of debt, resulting in approximately $23.5 million in interest savings over the life of the loan.

My Take: BioCryst's strong Q1 performance and upward revision of full-year guidance underscore the company's growth trajectory. Keep a close watch on this stock for future growth.

Technology (Sponsored)

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Everything Else

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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