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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.