The Defiance Daily Target 2X Long MSTR ETF (MSTX) soared 7.35% in the pre-market trading session on Tuesday, November 19th. The surge came after Benchmark reiterated its "Buy" rating on MicroStrategy (MSTR), a leading enterprise analytics and software company.
Positive analyst ratings and recommendations often boost investor confidence and drive up stock prices. In this case, the bullish "Buy" rating from Benchmark analysts on MicroStrategy appears to have fueled the rally in MSTX, an ETF that tracks the underlying MSTR stock.
MSTX is a leveraged ETF that aims to deliver twice the daily returns of MicroStrategy's stock price. As a result, any significant price movement in MSTR gets amplified in MSTX, leading to the substantial pre-market surge following the positive analyst rating on the company.
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