Equities Update: Gym Group, Jet2, Nvidia, Severn Trent, Bitcoin…

Gym Group showing some financial muscle as revenue grows

Adam Vettese, market analyst for eToro says: “The Gym Group’s latest update shows the company is doing some heavy lifting, with revenue up 8% and membership rising 4% in the first half of 2025. The business continues to execute on its expansion strategy, opening three new gyms and maintaining a robust pipeline for the rest of the year. Notably, average revenue per member has also grown, reflecting effective yield management. The reduction in net debt is another positive, demonstrating prudent financial management even as the group invests in new sites.

“However, the low-cost gym sector remains fiercely competitive, and while The Gym Group is making headway on profitability, margins are still relatively thin. The company’s ability to fund growth from free cash flow and its attractive valuation compared to peers are encouraging for investors. That said, sustained margin improvement and continued delivery on expansion targets will be key to unlocking further upside.”

Jet2 profits soar as customers still determined to get away

Mark Crouch, market analyst for eToro, says: “Jet2 wasn’t supposed to be the high-flyer of 2025, but here we are. In a year that started with low expectations and headwinds aplenty, the budget airline and tour operator has defied the odds, with revenues soaring and shares hitting all-time highs.

“Far from being grounded by a cost-of-living crisis, Jet2 has benefited from it. Customers, it turns out, are still determined to get away, and increasingly prefer the certainty and value of package holidays, Jet2’s sun-and-sand deals are proving too good to pass up, even in tighter times.

“With flight-only demand strong and package bookings accounting for over 70% of volume, Jet2’s margins are holding steady. And with passenger numbers expected to further ramp up heading into the summer holidays, Jet2 are demonstrating, that sometimes, the best way to beat turbulence, is to lean into it.”

Nvidia hits $4tn milestone as AI crown jewel drives markets

Gabriel Debach, market analyst at eToro, says: “With a market capitalization of over $4 trillion, Nvidia has rewritten market history, becoming the first company in the world to reach this milestone. But it’s not just about breaking records. It’s about market weight. And that weight tells the story of where global capital is headed.

“In the S&P 500, Nvidia now represents 7.32% of the index, more than any other stock, contributing 142 basis points to a year-to-date return of 7.14%. On its own, it has accounted for nearly a fifth of the index’s total performance. In the Nasdaq 100, the concentration is even more striking: with a weight of 9.27%, Nvidia has generated 184 basis points of gains out of a 9.22% annual total. In other words, one stock explains 25% of the entire tech index’s rise.

“But there’s more. The entire semiconductor sector has accounted for 33% of the QQQ’s performance (434 basis points out of 922) and nearly 30% of the SPY’s. And if we look inside the sector ETF par excellence, the VanEck Semiconductor ETF (SMH), the picture becomes even clearer. Nvidia makes up 20.7% of the portfolio, more than twice the weight of the second-largest holding, and has alone contributed 447 basis points to the ETF’s year-to-date return of +18.5%.

“These are figures that turn technological leadership into narrative and financial dominance. Nvidia is no longer just part of the market, it’s shaping it.

“And the long term tells a similar story. Over the past decade, Nvidia has delivered a return of over 34,000%, making it the best-performing large-cap stock in the Western equity universe with a market cap over $5 billion. A 10-bagger turned into an implicit benchmark, not just for retail investors, but for global price discovery.

“Behind these numbers isn’t just innovation. It’s the ability to embody a dominant narrative and convert it into portfolio structure. Nvidia has evolved from a graphics engine for video games into the computational backbone of global artificial intelligence. And as long as AI remains the guiding paradigm for capital allocation, Nvidia remains its core holding.”

Severn Trent on track to hit targets through dry spell

Adam Vettese, market analyst for eToro says: “Severn Trent’s latest trading update demonstrates robust operational momentum, as it enters the new regulatory cycle. A reduction in storm overflow spills and a 19% year-on-year increase in capital investment reflect a clear commitment to environmental improvement and infrastructure resilience. The reaffirmed financial guidance and progressive dividend outlook will reassure income-focused investors, while the £575 million affordability package strengthens Severn Trent’s social license at a time of heightened scrutiny for water utilities.

“The risk of a hosepipe ban this summer, amid the UK’s driest spring in over a century, puts operational agility in the spotlight. While this is not currently on the cards on Severn Trent’s patch, it is a factor that will need to be closely monitored. While Investments in leakage reduction and supply resilience are timely, any further restrictions could test the company’s ability to maintain service.”

Bitcoin surges to new all-time high as US lawmakers prepare key crypto legislation

Simon Peters, crypto analyst at eToro, says: “Bitcoin set a new all-time high yesterday. Price is again knocking on the door of the $112,000 resistance level today, indicating that a major breakout could be due. To what price though we’ll have to wait and see.

“Ultimately though, the price should go higher in the long term. Bitcoin is behaving according to the community narrative – as a hedge against monetary debasement – as central banks continue to run expansive monetary policy, governments keep borrowing and the money supply keeps rising.

“At the same time demand for the crypto asset, particularly from institutions, is growing. Public and private companies, funds and ETFs now command roughly 3.5 million bitcoin or about 17% of the fixed 21 million supply, up from 2.6 million bitcoin just a year ago. This increase in demand is putting further upwards pressure on the price.

“Finally crypto assets are gaining more regulatory and political support. The US is heading into ‘Crypto Week’ where the House of Representatives will be considering three landmark pieces of legislation which if passed will provide a massive boost to and further legitimise the sector.

“It’s hard not to be optimistic about bitcoin at this moment in time, but the risk of a fall in price or short-term pullback still exists. Before investing in bitcoin, potential investors should evaluate their time horizon and how long they are prepared to be invested for. Only invest with money that you can afford to lose and rather than deploying all of your capital at one time maybe consider dollar-cost-averaging (i.e. investing a fixed amount of money at regular intervals) as this could reduce the risk of investing right before a downturn in the price and also lower your average cost basis, giving you a greater return in the long run.”