Direxion Shares ETF Trust Direxion Daily MSFT Bull 2X ETF

MSFU

Market cap $630M

In just two months, the iShares Expanded Tech-Software Sector ETF fell more than 22%, taking its total decline from its peak to over 30%. In the early weeks of 2026, it seemed as though every weekend a new negative article about the sector was published.

Microsoft now trades at rare value levels, with a 25% drawdown and a trailing P/E of 24.5x, despite robust fundamentals. Market fears over cloud growth and aggressive AI-driven capex appear overblown given MSFT's strong balance sheet and consistent free cash flow. MSFU, the 2x leveraged ETF, offers potential upside but carries amplified risk; technical signals currently advise caution before entering.

Meta, Microsoft, and Tesla reported earnings after the bell, with investors looking for indicators that the Magnificent Seven is still magnificent in the early going of 2026. The result—so far so good—but was it magnificent?

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.