Editor’s note: Any and all references to time frames longer than one trading day are for purposes of market context only, and not recommendations of any holding time frame. Daily rebalancing ETFs are not meant to be held unmonitored for long periods. If you don’t have the resources, time or inclination to constantly monitor and manage your positions, leveraged and inverse ETFs are not for you.
Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives that do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. An investor could lose the full principal value of his or her investment in a single day. Investing in the funds is not equivalent to investing directly in AAPL, AMZN, AVGO, GOOGL, META, MSFT, MU, NFLX, NVDA, TSLA, and TSM.
For short-term traders, the Q3 2024 earnings season for the “Magnificent Seven” — Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla — may be an opportunity, but not without risk.
Tesla, Inc. has languished as of late, with the market having been somewhat underwhelmed by recent developments, including the ‘Robotaxi’ launch. By virtue of this decline, the stock stands as one of the worst-performing in the Consumer Discretionary sector YTD.
After four straight quarters of upside, Amazon.com, Inc. notched a post-earnings decline in Q2, but For Q3 2024, consensus expects earnings per share (EPS)* at $1.16, on revenues of $157.3 billion.
Alphabet, Inc. has traded higher YTD, but lags behind the S&P 500 Index*, though the stock does still stand as the 9th best performing in its industry. For Q3 2024, the consensus expects EPS of $1.83 on revenue of $86.4 billion.
Meta Platforms, Inc. has been a standout performer this year, rallying just shy of 70% in the first nine months of 2024. This time, consensus estimates foresee EPS of $5.22, on quarterly revenues of $40.2 billion.
Microsoft Inc.’s performance has left rather a lot to be desired this year, with the stock trading just shy of 11% higher, underperforming both the S&P 500, and the Information Technology sector. The stock remains one of the most formidable, standing as the third largest in both the S&P 500 Index and the Nasdaq 100 Index. For the upcoming report, expectations point to adjusted EPS at $3.11, on revenue of $64.5 billion.
Apple, Inc. trades around 20% higher YTD, a rather disappointing performance in comparison to the roughly 32% gain notched by the broader Information Technology sector. AAPL remains the largest stock in the sector, possessing a 7.1% weight, while also being the largest stock by weight in the Nasdaq 100. For Q3 2024, consensus expects adjusted EPS of $1.59, on revenues of $94.3 billion.
Nvidia Corporation remains the gold standard in the equity space, having rallied an eye-popping 172% YTD. Expectations for Q3 2024 point to adjusted EPS of $0.74, on quarterly revenues just over $33 billion.
Trading the 7 Largest NASDAQ Stocks
For traders looking to play the group in a single trade, the Direxion Daily Magnificent 7 Bull 2X (QQQU ) and Bear 1X Shares (QQQD ) seek daily investment results, before fees and expenses, of 200%, or 100% of the inverse (or opposite), of the performance of the Indxx Magnificent 7 Index*. The Indxx Magnificent 7 Index is provided by Indxx and is designed to track the performance of the seven largest NASDAQ listed companies.
Below is a list of key earnings dates, including but not exclusive to the Magnificent Seven.
Earnings dates are subject to change without notice.
Q3 2024 Earnings Season - % of Each Index Reporting by Week
Single-Stock ETFs
- Direxion Daily AAPL Bull 2X (AAPU) and Bear 1X (AAPD) Shares
- Direxion Daily AMZN Bull 2X (AMZU) and Bear 1X (AMZD) Shares
- Direxion Daily AVGO Bull 2X (AVL) and Bear 1X (AVS) Shares
- Direxion Daily GOOGL Bull 2X (GGLL) and Bear 1X (GGLS) Shares
- Direxion Daily MSFT Bull 2X (MSFU) and Bear 1X (MSFD) Shares
- Direxion Daily META Bull 2X (METU) and Bear 1X (METD) Shares
- Direxion Daily MU Bull 2X (MUU) and Bear 1X (MUD) Shares
- Direxion Daily NFLX Bull 2X (NFXL) and Bear 1X (NFXS) Shares
- Direxion Daily NVDA Bull 2X (NVDU) and Bear 1X (NVDD) Shares
- Direxion Daily TSLA Bull 2X (TSLL) and Bear 1X (TSLS) Shares
- Direxion Daily TSM Bull 2X (TSMX) and Bear 1X (TSMZ) Shares
| Ticker | Name | Weight in the Index | Expected Earnings Release |
|---|---|---|---|
| MSFT UW | MICROSOFT CORP | MSFU/MSFD | 10/24/2024 |
| TSLA UW | TESLA INC | TSLL/TSLS | 10/23/2024 |
| AAPL UW | APPLE INC | AAPU/AAPD | 10/31/2024 |
| GOOGL UW | ALPHABET INC-CL A | GGLL/GGLS | 10/24/2024 |
| AMZN UW | AMAZON.COM INC | AMZU/AMZD | 10/25/2024 |
| NVDA UW | NVIDIA CORP | NVDU/NVDD | 11/21/2024 |
| META UW | META PLATFORMS INC-CLASS A | METU/METD | 10/30/2024 |
| NFLX UW | NETFLIX INC | NFXL/NFXS | 10/17/2024 |
| TSM UN | TAIWAN SEMICONDUCTOR-SP ADR | TSMX/TSMZ | 10/17/2024 |
| MU UW | MICRON TECHNOLOGY INC | MUU/MUD | 12/20/2024 |
| AVGO UW | BROADCOM INC | AVL/AVS | 12/6/2024 |
For more news, information, and analysis, visit the Leveraged & Inverse Channel.
Disclosure Information
*Definitions and Index Descriptions
An investor should carefully consider a fund’s investment objective, risks, charges, and expenses before investing. A fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com. A fund’s prospectus and summary prospectus should be read carefully before investing.
Direxion Shares ETF Risks
An investment in the ETFs involves risk, including the possible loss of principal. The ETFs are non-diversified and include risks associated with concentration that results from an ETF’s investments in a particular industry, sector or company, which can increase volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause their price to fluctuate over time. The ETFs do not attempt to, and should not be expected to, provide returns which are a multiple of respective underlying security for periods other than a single day. For other risks including leverage, correlation, daily compounding, market volatility and risks specific to an industry, sector or company, please read the prospectus.
ALPS Distributors, Inc.
