May was another strong month for the markets, as the rally from April continued 📈
In this recap, we look at how the major indexes performed, how our portfolios compared, which stocks were the biggest winners and weakest performers in our portfolios, and the changes we made during May.
Dive into our full May Recap below 👇
📢 Our Best Buys for June will be released at the end of next week — don't miss it 🎯
What Moved the Markets in May?
May was another strong month for the markets, building on the gains from April. On the macro side, investors focused on the talks between the U.S. and Iran. No agreement has been announced yet, but markets became optimistic that a deal could be reached soon.
One of the biggest stories was the return of software stocks. After a very difficult start to the year, investors became less worried that AI could replace many software products. Strong results from Datadog and Snowflake gave investors more confidence in the sector. Atlassian (+53%), Figma (+51%) and ServiceNow (+40%) all had an excellent month.
GameStop made headlines after making a surprising $56 billion offer for eBay. The proposal was quickly rejected, as investors and eBay both questioned how GameStop would finance such a large deal.
Memory stocks also had a great month. Samsung, Micron and SK hynix all moved higher as demand for AI memory stayed extremely strong. During the month, all three companies crossed the $1 trillion market cap mark, joining the world’s largest and most valuable companies.
Amazon launched Amazon Now, bringing 30-minute delivery to cities across the U.S. Airbnb announced its biggest expansion in years by adding hotels, car rentals and grocery delivery to its platform.
Meta launched Forum, a new app inspired by Reddit that focuses on communities, discussions and AI-powered features. The company also introduced paid subscription options for Facebook, Instagram and WhatsApp.
Cerebras, a company that develops AI chips for training and inference, went public this month. The stock jumped more than 65% on its first trading day before falling back later in the month. Investors also got excited about a possible SpaceX IPO, with June 12 being mentioned as the expected listing date.
NextEra Energy announced a $67 billion acquisition of Dominion Energy, creating one of the largest utility companies in the world. Uber also increased its stake in Delivery Hero and is interested in a full takeover of the company.
Dell stole the show during the final week of May. AI-optimized server revenue jumped from $1.9 billion to $16.1 billion in just one year. Dell also secured a $9.7 billion Pentagon contract, making May the best month in the company's history.
How strong was May for the markets? Here’s how the three major indexes performed:
S&P 500: +5.2% 📈 (+10.7% YTD)
Nasdaq: +8.4% 📈 (+16.1% YTD)
Dow Jones: +2.8% 📈 (+6.2% YTD)
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Portfolio Performance: How Did We Do?
How did our portfolios perform in May?
In this update, we compare our results with the S&P 500, Nasdaq, and Dow Jones, look at the biggest winners and losers, and review the changes we made during the month.
Curious to see what we bought and sold? Dive into the full breakdown below 👇
Available exclusively for our paid members ✨