Monthly Outlook: Tech, Miners, Wellness

Is May the turning point investors have been waiting for? The tariff landscape is shifting, tech earnings are mostly strong, and even beaten-down Aussie miners are starting to stir. Meanwhile, Hims & Hers is riding the wellness wave with serious momentum. As green shoots emerge, here are three stories worth watching this month.

Trade war cools, tech heats up

There are early signs that the global tariff landscape may be inching toward greater clarity, though uncertainty persists. In late April, former President Trump hinted at a potential de-escalation in the trade conflict with China. He suggested that the current 145% tariff rate on Chinese imports would come down “substantially,” stating, “It won’t be that high.”

A baseline universal tariff of at least 10% remains in place for all countries, with no public sign of a rollback. On top of that, around 60 countries face higher, targeted “reciprocal” tariffs, which could be revised through negotiation. The most severe tariffs still apply to Chinese imports, though even these may shift through bilateral talks. In May, attention will turn to the progress of trade negotiations and potential exemptions for specific industries. As more time passes, markets may gain a clearer picture. But in the meantime, volatility could remain part of the landscape.

Despite sustained tariff headwinds, improving price trends and upbeat earnings calls point to a potential rebound for US tech stocks in May. Meta (META:US) and Microsoft (MSFT:US) both reported earnings on 1 May, with shares surging 6% and 8% respectively in after-hours trading. Both companies beat revenue expectations. Microsoft’s results were bolstered by strong Azure cloud growth, which helped reassure investors that its hefty investments in AI are beginning to deliver returns. Meta Platforms rose more than 4% after also surpassing Wall Street’s first-quarter revenue estimates. The performance suggests its AI-powered advertising tools are successfully capturing advertising dollars, even in an environment clouded by macro and trade-related uncertainty.

In contrast, Tesla (TSLA:US) missed earnings expectations in late April. But the stock rallied after CEO Elon Musk announced he would scale back his government-related work and reaffirmed that plans for a more affordable, self-driving Tesla remain on track. The stock is up around 25% since its 21 April earnings release. Elsewhere, Palantir (PLTR:US) is up 63% year to date, making it the top-performing stock in both the S&P 500 and the Nasdaq 100 so far this year. All eyes now turn to NVIDIA (NVDA:US), with earnings expected on 28 May.

Monthly performance of S&P 500 companies

MinRes shows signs of life

Materials, mining and energy stocks were among the hardest hit on the ASX in April. Alcoa (AAI) fell 20%. Beach Energy (BPT) and South32 (S32) each dropped close to 20%. Fan favourites Mineral Resources (MIN) and Pilbara Minerals (PLS) were down 18% and 15% respectively.

Mineral Resources, which has fallen around 70% over the past year, surged 15% on Tuesday, 29 April after its Q3 FY25 update showed early signs of stabilisation. Despite lower production volumes, the company pointed to meaningful cost-cutting progress, including workforce reductions. Liquidity remained strong, with more than $1.25 billion available, including over $450 million in cash. Governance is also in focus, with the company initiating a process to appoint a new Board Chair.

While production volumes declined during the quarter, MinRes is sticking to its operational targets. The lithium market, which remains critical to the company’s outlook, is also showing tentative signs of stabilisation. There is potential upside if lithium prices continue to firm and management delivers on cost and efficiency goals. According to TipRanks, analyst sentiment on MinRes is largely positive. The high-end price target sits at $40, implying a potential upside of 95%. Both Morgan Stanley and Macquarie have price targets of $35. That said, not everyone is convinced. Mineral Resources and Pilbara Minerals still rank among the most shorted stocks on the ASX, indicating a cohort of investors is actively betting against a sustained recovery.

Hims jumps on wellness trend

Hims & Hers Health (HIMS:US) has experienced a notable uptick in trading activity on CMC Invest in recent months, reflecting growing retail investor interest as momentum builds. The company’s mission is ambitious: to “help the world feel great through the power of better health.” It delivers on this promise by offering a personalised, frictionless healthcare experience through its direct-to-consumer platform. Users consult licensed healthcare professionals and access prescription treatments entirely within the Hims ecosystem.

The company offers plans and subscriptions generally ranging from $20 to $50 per month, depending on the service. Branded GLP-1 medications such as Ozempic are priced at $1,800 per month, while compounded alternatives are available for $165. This pricing flexibility allows Hims to serve a broad customer base, particularly as demand for GLP-1 weight-loss treatments continues to rise.

The stock recently surged 30% following the announcement of a new partnership with Novo Nordisk. The collaboration strengthens Hims’ position in the weight management and chronic condition care space. The company now has a market capitalisation just shy of $8 billion, with the share price up around 250% over the past year.

As of the latest quarter, Hims reported 2.2 million subscribers, a 45% increase year over year. Fourth-quarter revenue reached $481 million, up 95% from $247 million in the same period last year. This growth highlights the company’s ability to quickly expand into new verticals, particularly in high-demand areas such as weight loss, sexual health, and mental health. The underlying thesis is that each new service line draws more users into the Hims ecosystem, strengthens its competitive moat, and improves its ability to meet evolving consumer health needs.

But competition is heating up. On 14 November 2024, Amazon (AMZN:US) introduced upfront pricing for virtual doctor visits, bundled with a subscription for Prime members. The offering includes telehealth consultations, treatment plans, and free medication delivery across a wide range of common health, beauty, and lifestyle concerns. While Amazon’s online pharmacy has operated since 2020, this latest move appears designed to capture some of the momentum Hims has built.

Even so, many analysts suggest Hims may maintain a competitive advantage. With a growing base of personalised-plan subscribers and a vertically integrated model that is difficult to replicate, the company is well positioned. Some reasons include its founder-led team and a focused vision. Hims offers a stronger, more cohesive brand identity centred on health and wellness. In contrast, Amazon is more associated with efficiency and scale, which may make it harder to foster the same sense of trust and personal care. Hims is set to report earnings on 5 May. That announcement may clarify whether its growth is on a sustainable path or if the competitive pressure is starting to catch up.

^{Image: The launch of new specialties, as well as the introduction of personalised products and services, has allowed HIMS to scale.}

Ready to explore international markets?

CMC Invest is your home for international investment, with over 45,000 stocks and ETFs at your fingertips. Get $0 brokerage on all securities from the US, UK, Canada, and Japan (FX spreads apply).

Plus, you can now trade single units of popular stocks like Apple or Tesla. Choose from 50+ leading US stocks and ETFs.

To view or trade international stocks, log in to your CMC Invest account.

Don’t have an account? Sign up now to begin.

Disclaimer: This article provides general information only. It has been prepared without taking account of your objectives, financial situation or needs. It is not to be construed as a solicitation or an offer to buy or sell any financial instruments, or as a recommendation and/or investment advice. It does not intend to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any financial instruments. You should consider your objectives, financial situation and needs before acting on the information in this article. CMC Markets believes that the information in this article is correct, and any opinions and conclusions are reasonably held or made on information available at the time of its compilation, but no representation or warranty is made as to the accuracy, reliability or completeness of any statements made in this article. CMC Markets is under no obligation to, and does not, update or keep current the information contained in this article. Neither CMC Markets nor any of its affiliates or subsidiaries accepts liability for loss or damage arising out of the use of all or any part of this article. Any opinions or conclusions set forth in this article are subject to change without notice and may differ or be contrary to the opinions or conclusions expressed by any other members of CMC Markets.