The Defiance Daily Target 1.75X Long MSTR ETF (MSTX) experienced a pre-market plunge of 5.08% on Tuesday, October 30th, ahead of MicroStrategy's (MSTR) highly anticipated Q3 earnings report scheduled for after the market close.
As a leveraged ETF that tracks the performance of MicroStrategy stock with 1.75x daily leverage, MSTX's price movements are amplified based on the underlying MSTR stock movements. The pre-market decline likely reflects investor concerns and bearish sentiment surrounding MicroStrategy's Q3 earnings expectations.
According to consensus estimates, analysts expect MicroStrategy to report a quarterly loss of $0.02 per share, which, while an improvement from the previous year, could disappoint investors. Additionally, revenue estimates for the quarter stand at $121.45 million, down 6.2% year-over-year, indicating potential challenges in the company's core business.
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