Direxion Daily MSFT Bull 2X Shares

MSFU

Market cap $236M

A recent pullback has previously torrid Microsoft (MSFT) stock residing about 9% below its 52-week high. Though that's close to the 10% needed to fit the strict definition of a correction, the stock's retrenchment is arguably healthy.

Microsoft remains a strong long-term investment, even at current valuations considered rich by some investors. For aggressive investors, trading the Direxion Daily MSFT Bull 2X Shares ETF offers a leveraged way to amplify MSFT's daily performance. MSFU provides liquidity and tradability but carries significant risks, including high volatility, lack of diversification, and potential for large drawdowns.

When it comes to spending, big tech companies have their wallets wide open, ready to use the credit card with no limit if necessary. This is especially the case when it comes to cloud computing spending alongside artificial intelligence (AI).

Microsoft (MSFT) and Meta (META) were two of the biggest names reporting earnings on Wednesday. With the expectation that AI would be a prime revenue generator for both, it was estimated they would beat earnings estimates, and they did just that.

If you're going to be part of the Magnificent Seven, you better do something that's, well

As seasoned investors already know, the 24-hour news cycle can change markets quickly and swiftly. After weathering the tariff tantrum storm, downtrodden Magnificent Seven stocks are starting to look magnificent again thanks to U.S.-China trade deal news, but caution is always warranted.

Microsoft and the cloud computing sector appear to have sloughed off April volatility showers . The software maker has been rallying post-Q1 earnings.

Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

With plenty of market uncertainty to go around, equities have been mostly in the red the past month. However, for opportunistic traders, this could mean a red tag sale for names in the Magnificent Seven.

Leveraged ETFs like MSFU are risky due to volatility drag, which leads to underperformance compared to the underlying stock, MSFT, even in low volatility periods. MSFU's expense ratio is high at 1.04%, and despite a seemingly attractive yield of 8.27%, it fails to deliver better returns than MSFT. The ETF's high volatility and drawdown make it unsuitable for conservative investors, with additional risks from tracking errors and derivative use.