From April 1 to June 30, 2025, the U.S. stock market experienced significant volatility. Influenced by President Trump's "Liberation Day"
tariff plan, the S&P 500 Index dropped more than 12% in early April, nearing bear market territory.
Subsequently, the tariff policy entered a pause period, and trade tensions between the U.S. and China, as well as between the U.S. and
Canada, eased, which drove the market to rebound strongly in May and June. The S&P 500 Index rose by about 11% for the quarter, while
the Nasdaq Composite Index gained approximately 18%. The tech sector led the rally, though the performance of certain high-volatility
stocks was notably mixed.
Source: TradingView
This article, based on the latest data (as of July 7, 2025), analyzes the top three best- and worst-performing stocks of Q2 2025, exploring
their key drivers and investment outlook.
Market Background
In Q2 2025, global stock markets were influenced by tariff uncertainties, geopolitical tensions in the Middle East, and expectations around
Federal Reserve monetary policy. The S&P 500 Index fell by 12% before April 8, but due to strong earnings reports from 78% of S&P 500
companies and positive developments such as Canada’s cancellation of the digital services tax, the index surged about 6.15% in May,
marking the best May performance since 1990.
The tech sector (+22.8%) and industrials (+15.4%) led the rally, while consumer goods (-2%) and healthcare (+2.7%) showed relatively
weak performance. The U.S. Dollar Index (DXY) dropped by 7.1%, boosting risk assets. Market sentiment shifted from "extreme fear" in April
to "extreme greed" in June, supporting the rebound in high-beta stocks.
Top Stocks of the Quarter
Below are the top three performing stocks in Q2 2025:
1. Robinhood Markets (HOOD)
Performance: Up 125% for the quarter, up 150% year-to-date
Market Cap: Approximately $82.5 billion
Trailing P/E: Around 53
Source: TradingView
In 2025, the cryptocurrency market continued to surge, with Bitcoin and Ethereum reaching all-time highs, directly boosting trading activity
on Robinhood's platform. As trading volumes for crypto assets grew significantly, Robinhood’s monthly active users increased by 14.4%
year-over-year in Q1, and revenue surged by 50%, reaching $927 million, far exceeding market expectations and driving a strong earnings
rebound.
In addition to its improving fundamentals, Robinhood continued to push its product diversification strategy. The company recently launched
tokenized U.S. stock and ETF trading services in Europe, and introduced cryptocurrency staking functionality in the U.S., further
strengthening its competitive edge in retail trading. These product launches attracted significant inflows of risk-seeking capital, receiving
positive market feedback. Bank of America subsequently raised Robinhood’s price target, which helped drive its stock price up by about 10%
in June.
Furthermore, the macro-level "risk-on" sentiment also contributed to the positive push for Robinhood’s stock price. In Q2 2025, as the U.S.
stock market entered a rebound cycle, high-beta stocks outperformed, and Robinhood, being a typical high-volatility platform operator (with
a beta of around 1.8), became an important target for retail investors chasing speculative themes.
Overall, Robinhood demonstrated strong growth momentum driven by the crypto asset trading boom and product expansion strategies,
offering high appeal to short-term speculative investors. However, considering its current high valuation and reliance on external market
sentiment, the stock may not be suitable for long-term investments, but rather for risk-tolerant, flexible investors in the short-term.
2. Coinbase Global (COIN)
Performance: Up 103.5% for the quarter, up 43.8% over the past year
Market Cap: Approximately $91 billion
Trailing P/E: Around 67
Source: TradingView
In 2025, Coinbase, as the largest cryptocurrency exchange in the U.S., significantly benefited from the surge in digital asset prices. The
company's trading revenues saw a substantial increase, especially in June, when its stock price spiked by 43% due to its strategic
partnership with stablecoin issuer Circle and the U.S. Senate’s passing of a stablecoin bill, which made Coinbase a major market focus.
Coinbase also saw a notable boost in its institutional services sector. As institutional investor interest in cryptocurrencies grew, Coinbase's
institutional services revenue rose by about 30% year-over-year, showcasing its strong appeal in the professional investor space. This
growth further solidified its market leadership in the cryptocurrency industry.
In addition, the April market rebound had a positive impact on Coinbase’s stock price. With technology and crypto-related stocks rallying
broadly, Coinbase’s high beta (2.0) amplified the gains, making it a preferred choice for short-term, high-risk-tolerance investors. However,
its high valuation and regulatory risks may make it more suitable for short-term traders rather than long-term investors.
3. NRG Energy (NRG)
Performance: Up 69% for the quarter, up 77% over the past year
Market Cap: Approximately $31 billion
Trailing P/E: Around 25
Source: TradingView
In Q2 2025, the Senate's decision to exclude wind and solar projects from new tax legislation and to preserve clean energy tax credits gave
a significant boost to the energy sector. NRG Energy benefited from this policy, as the company has a diversified portfolio in renewable
energy and natural gas power generation.
The global energy transition has driven growing demand for clean energy and efficient power generation. NRG Energy has seen notable
growth through its retail electricity business in the Texas market and its continued investments in renewable energy. In Q1 2025, the
company’s revenue grew by around 12% year-over-year. By the end of Q2, investor optimism around the energy transition helped fuel a
rebound in the energy sector. NRG Energy, with its low beta (1.1) and stable cash flow, became a favorite among investors.
However, NRG Energy’s current valuation is close to fair value, which may limit its upside potential in the short-term. Additionally, fluctuations
in global energy prices and policy changes remain potential risks to its profitability. This stock may be more suitable for long-term investors.
Worst Stocks of the Quarter
1. Sarepta Therapeutics (SRPT)
Performance: Down 73.2% for the quarter, down 89.2% over the past year, and down 90% from the June 2024 peak.
Market Cap: Approximately $1.7 billion
Trailing P/E: Losses
Source: TradingView
In 2025, Sarepta was severely impacted by safety concerns surrounding its core pipeline product, Elevidys gene therapy. In March and June,
the drug was linked to two fatal cases of acute liver failure during treatment of Duchenne Muscular Dystrophy (DMD) patients, directly
undermining investor confidence in the company’s future and serving as the key catalyst for the stock's decline.
In response, the FDA ramped up its review of Elevidys’ safety, further delaying its full approval process. Although the stock briefly rose by
6.73% on March 19 due to initial trial data, subsequent regulatory uncertainty quickly reversed market sentiment, pushing the stock back
into a downtrend.
Entering April, the broader market faced significant sell-offs due to Trump’s tariff policies, which hit the biotechnology sector especially
hard. As a highly volatile stock with a beta coefficient of 1.5, Sarepta’s price decline was exacerbated, reflecting a rapid shift in investor risk
appetite.
Currently, the stock is slightly below fair value, and short-term valuation does not offer significant appeal. If subsequent clinical data
remains negative or regulatory reviews tighten, further sell-offs could follow. For investors with a high risk tolerance, the current low price
may offer a potential entry point, but it is crucial to closely monitor updates on clinical trials and FDA decisions to guard against further
uncertainty.
2. UnitedHealth Group (UNH)
Performance: Down 40% for the quarter, down 40% over the past year, and down 51% from the November 2024 peak.
Market Cap: Approximately $275.5 billion
Trailing P/E: Approximately 13
Source: TradingView
In Q1 2025, UnitedHealth reported significant profit pressure due to rising healthcare costs and lower reimbursement rates. As a result, the
company’s earnings per share fell short of market expectations, directly affecting investor confidence. In April, UnitedHealth faced news of
a Department of Justice investigation into alleged “criminal healthcare fraud,” further increasing market uncertainty. In response to this legal
risk, UnitedHealth suspended its 2025 financial guidance, causing the stock to plummet.
The healthcare sector as a whole also struggled, with only a 2.7% increase in 2024, and the April 2025 market sell-off further pressured
UnitedHealth as a significant S&P 500 component, weighing down overall market sentiment.
While the stock is currently trading at a 35% discount to its fair value of $473, attracting some value investors, ongoing regulatory pressure
and rising costs may pose long-term challenges for the company. Investors should remain cautious, particularly with the legal investigation
still ongoing.
3. Enphase Energy (ENPH)
Performance: Down 36% for the quarter, down 38% over the past year, and down 70% from the June 2024 peak.
Market Cap: Approximately $5.6 billion
Trailing P/E: Approximately 39
Source: TradingView
In Q1 2025, Enphase faced significant pressure from the slowing growth of the solar market, particularly with a decline in inverter demand,
leading to revenue missing expectations. On June 17, the Senate budget proposal to gradually eliminate clean energy tax credits triggered a
strong market reaction, with Enphase’s stock plunging 24% in a single day. This policy uncertainty further fueled investor concerns about
the company’s outlook.
Additionally, Enphase is grappling with high inventory levels and rising supply chain costs, which have compressed gross margins and
weakened profitability. The global economic environment and production cost pressures have added significant operational strain.
Furthermore, the uncertainty surrounding tariffs in April negatively impacted the renewable energy sector, with Enphase, having a beta
coefficient of 1.6, experiencing a more pronounced price decline.
While Enphase’s stock is trading at a fair value discount of around 1% to its estimated value of $40, its valuation is relatively reasonable.
However, given the uncertain timing of demand recovery, the company faces market risks. Long-term growth potential exists due to its
leadership in the renewable energy sector, but short-term demand weakness and policy risks could limit the stock’s rebound potential.
