Ten small stocks boasted huge gains on Tuesday, defying a lackluster broader market sentiment, amid fresh company-specific developments that boosted investing appetite. Of the 10 firms, three companies touched new record highs.
Meanwhile, only the Nasdaq finished in the green among Wall Street’s main indices, up 0.13 percent. The Dow Jones and the S&P 500 declined by 0.38 percent and 0.09 percent, respectively.
In this article, we focus on the 10 small but terrible stocks that led the charge and break down the reasons behind their gains. We focused exclusively on stocks with a market capitalization between $3 million and $2 billion with a trading volume of 5 million shares.
The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels
10. Cronos Group Inc. (NASDAQ:CRON)
Cronos Group jumped by 7.56 percent on Tuesday to finish at $2.69 apiece as investor sentiment was fueled by its cannabis expansion program with the full acquisition of a European company.
In a statement on the same day, Cronos Group Inc. (NASDAQ:CRON) said that its wholly-owned subsidiary entered into a definitive agreement to acquire CanAdelaar B.V., the largest cannabis company in the Netherlands, for $67 million with additional contingent consideration payable in cash based on 0.5x of CanAdelaar’s normalized EBITDA in 2026 and 2027.
“Our acquisition of CanAdelaar is a financially compelling and highly strategic transaction that will establish a strategic footprint in Europe and enable us to leverage our investments in borderless products,” Cronos Group Inc. (NASDAQ:CRON) Chairman, President, and CEO Mike Gorenstein.
“The Netherlands has a deep cannabis heritage, and its coffee shops are known worldwide to have played a foundational role in the evolution of the legal cannabis industry. European expansion is an important area of focus for us, and we were especially intrigued that the Netherlands legislated and established a responsible and well-functioning adult-use cannabis market with the Wietexperiment. We are excited to work with the Dutch government, regulators, coffee shops, adult consumers, and all stakeholders to make the Wietexperiment a continued success,” he added.
According to the company, CanAdelaar currently cultivates approximately 20,000 kg of dried flower annually, and is the only industrial-scale greenhouse cultivator in the Wietexperiment.
9. Beyond Meat Inc. (NASDAQ:BYND)
Beyond Meat saw its share prices jump by 10.53 percent on Tuesday to finish at $1.26 apiece as investors resorted to bargain-hunting following five consecutive days of decline.
The stock appears to be testing the $1 territory anew—the minimum bid price requirement of the Nasdaq to stay listed on the exchange, having traded below the said level for several days last month.
In other news, Beyond Meat, Inc. (NASDAQ:BYND) was earlier slapped with a $40 million penalty by a US court after it found that the company had infringed on a trademark of its rival firm, Vegadelphia.
According to reports citing court documents, Beyond Meat Inc. (NASDAQ:BYND) violated Vegadelphia’s trademark, “Where Great Taste is Plant-Based,” with its own slogan, “Great Taste, Plant-Based.”
In its filing lodged in 2022, Vegadelphia said that Beyond Meat, Inc. (NASDAQ:BYND) could cause confusion among customers.
Meanwhile, the company expressed its disagreement over the court result, saying that it intends to “seek further judicial review of the decision and appeal the verdict.”
8. POET Technologies Inc. (NASDAQ:POET)
POET Technologies rallied for a second day on Tuesday, jumping 10.75 percent to close at $6.90 apiece as investors took heart from the launch of an ultra-fast data-sending microchip capable of supporting the growing needs of the artificial intelligence industry.
In a blog post on Monday, POET Technologies Inc. (NASDAQ:POET) introduced the Hybrid-Integrated 1.6T 2xFR4 Transmitter photonic integrated circuit (PIC), a new microchip capable of transmitting 1.6 trillion bits of data per second and supporting the growing demand of data centers, as networks slowly transition to 1.6T architectures from 400G to 800G at present.
“As network operators transition from 400G to 800G and 1.6T architectures, traditional assembly techniques are reaching physical and economic limits. Wire-bonded packages and micro-optical alignments add cost, magnify RF crosstalk and thermal challenges, and restrict yield,” POET Technologies Inc. (NASDAQ:POET) said.
“Profit margins become thinner when using current approaches. A better way of moving data from one point to another has been sought for years. The POET Optical Interposer and the products built from it—including the Hybrid-Integrated 1.6T 2xFR4 Transmitter PIC—are perhaps the best solution for an industry in need. POET eliminates active alignment and wire bonds, providing a high-throughput, CMOS-compatible path to scale,” it added.
7. T1 Energy Inc. (NYSE:TE)
T1 Energy extended its winning streak to a fourth straight day on Tuesday to hit a new two-year high as investors took path from an investment firm’s bullish rating and price target for the stock.
At intra-day trading, the stock surged to its highest price of $7.04 before trimming gains to finish the day just up by 11.79 percent at $6.73 apiece.
In a market note on the same day, Alliance Global Partners gave T1 Energy Inc. (NYSE:TE) a “buy” recommendation and a price target of $8.50, marking a 26.3 percent upside potential from its last closing price.
Last week, T1 Energy Inc. (NYSE:TE) was also issued a “buy” recommendation from investment firm Johnson Rice alongside an $8 price target.
In other news, T1 Energy Inc. (NYSE:TE) announced last week that it was planning to issue 17.9 million shares with a par value of $0.01, issuable pursuant to the conversion of a convertible senior note instrument.
T1 Energy Inc. (NYSE:TE) is a solar and battery solutions provider. In the third quarter of the year, the company expanded its net loss attributable to shareholders by 412 percent to $140.8 million from $27.47 million in the same period last year. Total net sales were at $210.5 million, versus $0 in the same period last year.
6. Tilray Brands, Inc. (NASDAQ:TLRY)
Tilray Brands bounced back by 12.36 percent on Tuesday to close at $8.09 apiece as investor optimism was bolstered by the submission of a new Senate bill, which aims to legalize home cultivation of marijuana in Florida.
On Friday, Sen. Carlos Smith filed the legislation seeking to permit qualified patients aged 21 and above to cultivate up to six flowering plants for personal and therapeutic purposes in the state.
“A qualified patient who cultivates cannabis shall ensure that the plants are secured in a manner to prevent access by unauthorized persons,” the bill read.
The legislation sparked a buying activity on shares of Tilray Brands, Inc. (NASDAQ:TLRY), supported by President Donald Trump’s earlier backing of the reclassification of cannabis to Schedule II from I at present.
Drugs under Schedule II are classified with a high abuse risk but also have safe and accepted medical uses in the US.
Meanwhile, Schedule I drugs, where cannabis currently falls under, are those with a high abuse risk, without any safe and accepted medical use.
Earlier, investment firm Jefferies issued an encouraging coverage for Tilray Brands, Inc. (NASDAQ:TLRY), saying that it would highly benefit from the potential rescheduling of cannabis use to a lesser federal restriction.
5. AXT Inc. (NASDAQ:AXTI)
AXT saw its share prices jump to a new 24-year high on Tuesday, as investors repositioned portfolios ahead of expected business updates next week.
At intra-day trading, the company soared to a record high of $15.06 before trimming a few cents to end the day just up by 17.70 percent at $14.96 apiece.
In a statement, AXT Inc. (NASDAQ:AXTI) said that it would participate in the Northland Securities Growth Conference on Tuesday, December 16, where investors will be looking out for updates about its business and cues on its growth outlook for this year and the next.
AXT Inc. (NASDAQ:AXTI) is a material science company that develops and manufactures high-performance compound and single-element semiconductor substrate wafers comprising indium phosphide (InP), gallium arsenide (GaAs), and germanium (Ge).
In the third quarter of the year, it narrowed its attributable net loss by 35 percent to $1.9 million from $2.9 million in the same period last year.
Revenues jumped by 18.2 percent to $27.9 million from $23.6 million year-on-year on the back of a strong uptick in indium phosphide demand from data center applications.
Indium phosphide revenues alone soared by more than 250 percent on a quarter-on-quarter basis, reaching a three-year high.
“With strong, ongoing market trends fueling the data center upgrade cycle, we believe we have a tremendous opportunity in 2026 to drive meaningful growth in our business and a return to profitability,” said AXT Inc. (NASDAQ:AXTI) CEO Morris Young.
4. Tronox Holdings plc (NYSE:TROX)
Tronox soared by 25.60 percent on Tuesday to finish at $4.71 apiece after successfully raising $600 million in fresh funds to finance its aggressive expansion program.
In a statement on the same day, Tronox Holdings plc (NYSE:TROX) said that it earned the financial backing of the Export Finance Australia (EFA) and the Export-Import Bank of the United States (EXIM) for the said amount to support the development of its rare earth supply chain, including mine extensions, infrastructure support, and cracking and leaching capacity.
The coordinated letters form part of the agencies’ support to the US-Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths announced in October of this year.
At present, Tronox Holdings plc (NYSE:TROX) is underway with the definitive feasibility study for a proposed cracking and leaching facility in Western Australia to produce a mixed rare earth carbonate, including both light and heavy rare earths.
It said that it would begin work with downstream customers and other key business partners to develop a financeable project structure consistent with its long-term capital allocation priorities
“This announcement represents a significant milestone in advancing the expansion of Tronox’s minerals processing operations to produce rare earth elements for customers that are critical to permanent magnet, defense, energy, and advanced technology industries,” said Tronox Holdings plc (NYSE:TROX) CEO John Romano.
“While Tronox currently mines and sells tailings materials containing rare earth elements, the Letters from EFA and EXIM highlight the opportunity for Tronox to assume a leading role as a supplier of rare earth elements to support the critical mineral strategies of Australia and the United States,” he added.
3. 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS)
1-800 Flowers extended its winning streak to a third straight day on Tuesday, jumping 32.80 percent to close at $4.94 apiece as investors welcomed the appointment of a key executive to support the company’s transformation and artificial intelligence adoption.
In a statement on Monday, 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) named Alexander Zelikovsky as its new Chief Information Officer, who will be responsible for supporting and leading an enterprise-wide technology strategy, such as AI and business optimization efforts.
“Alex is a visionary technology leader with proven expertise leading digital transformation initiatives at scale,” said 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) CEO Adolfo Villagomez.
“His ability to position technology to fuel business growth, enhance operational efficiency, and deliver personalized customer experiences is all critical to driving our transformation strategy forward. His experience in enterprise modernization, AI, and cybersecurity will be instrumental in accelerating growth and innovation across our portfolio,” he added.
Zelikovsky brings more than 25 years of experience in technology leadership, transforming traditional businesses into digital enterprises a global scale.
He served as executive vice president and Global CIO at Pitney Bowes and was also head of digital technology at Kimberly-Clark for both the EMEA and Latin America regions, among others.
2. Alexander & Baldwin, Inc. (NYSE:ALEX)
Alexander & Baldwin bounced back on Tuesday to hit a new three-year high as investors repositioned portfolios following news that it is set to be taken private for $2.3 billion.
Following six straight days of losses, the stock climbed to its highest price of $20.97 at intra-day trading before trimming gains to end the day just up by 37.71 percent at $20.85 apiece.
This followed an announcement from Alexander & Baldwin, Inc. (NYSE:ALEX) that it signed a definitive merger agreement with a joint venture company formed by MW Group and funds affiliated with Blackstone Real Estate and DivcoWest, for the acquisition of all its outstanding common shares at a price of $21.20 apiece, including debt.
The acquisition price represented a 40 percent upside potential from its closing price on December 8.
The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions, including shareholder approval.
“We’re pleased to reach this agreement which delivers significant, immediate and certain value to our shareholders while strengthening A&B’s ability to serve the diverse needs of communities across Hawai’i,” said Alexander & Baldwin, Inc. (NYSE:ALEX) Chairman of the Board Eric Yeaman.
“The Board is confident that [this] news is in the best interests of all of A&B’s stakeholders. It delivers a substantial cash premium for shareholders and long-term benefits for our valued employees, tenants and communities,” he added.
In other news, Alexander & Baldwin, Inc. (NYSE:ALEX) also declared $0.35 worth of dividends to all common shareholders on record as of December 19, 2025. The dividends are payable on January 8, 2026.
1. Designer Brands Inc. (NYSE:DBI)
Designer Brands soared to a new record high on Tuesday, jumping 48.45 percent to finish at $7.20 apiece as investor sentiment was boosted by its earnings performance in the third quarter of the year.
In an updated report on the same day, Designer Brands Inc. (NYSE:DBI) said it grew its attributable net income by 40 percent to $18.21 million from $13.01 million in the same period last year, despite net sales declining by 3.2 percent to $752.4 million from $777.19 million year-on-year.
Net sales dropped due to lower retail sales from both its US and Canada operations, as well as comparable store sales.
“While macroeconomic pressures persist, we are confident in our ability to navigate the near-term environment and continue making progress on our long-term strategies,” said Designer Brands Inc. (NYSE:DBI) Chief Executive Officer Doug Howe.
For the full fiscal year of 2025, Designer Brands Inc. (NYSE:DBI) expects net sales to dip by 3 to 5 percent and adjusted operating profit to settle between $50 million to $55 million.
In other developments, shareholders of the company’s Class A and B common shares as of December 5 are set to receive $0.05 worth of cash dividends on December 19, 2025.
While we acknowledge the potential of DBI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DBI and that has 100x upside potential, check out our report about the cheapest AI stock.
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