Direxion Daily MSFT Bull 2X Shares (MSFU)

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

The Direxion Daily MSFT Bull 2x ETF offers 2x daily exposure to MSFT, ideal for short-term trades around catalysts like earnings or product launches. We are bullish on MSFT due to its dominant AI positioning with OpenAI, massive AI investments, and the upcoming Windows 11 upgrade cycle. Leveraged ETFs like MSFU carry significant risks, especially with loss recoupment and volatility over multiple days—returns may diverge from 2x MSFT.

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.

We'll most likely see growth continue in the near and long term for cloud computing as well as artificial intelligence (AI). This gives traders a pair of options to capitalize on: the Direxion Daily Cloud Computing Bull 2X Shares ETF (CLDL) and the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF (UBOT).

Investment funds can move a stock in one direction given their vast amounts of capital to throw around. In the case of Microsoft, increased fund ownership could bring a bullish trend in the near future.

With 2025 in full swing, the first months of the new year will begin with a spate of earnings from companies that occupy a significant portion of the S&P 500, namely tech. That said, Direxion has a suite of single-stock exchange-traded funds (ETFs) to watch.

Editor's note: Any and all references to time frames longer than one trading day are for purposes of market context only, and not recommendations of any holding time frame. Daily rebalancing ETFs are not meant to be held unmonitored for long periods.

As 1/7th of the vaunted “Magnificent Seven” that's been leading the way for market returns this year, Meta could continue to prosper with its investments in AI. That would give bullish traders reason to ride the momentum.

Direxion Daily MSFT Bull 2X Shares ETF (MSFU) has performed well, delivering triple-digit total returns over the past seven quarters since inception. Leveraged ETFs like MSFU come with significant risks, including daily resets that can lead to volatility drag and erosion of net assets. Using momentum indicators like Relative Strength Index and On Balance Volume can help investors navigate entry and exit points for MSFU positions to maximize gains and mitigate risks.

Microsoft Corp MSFT managed to stave off the Monday morning blues, poking its head above parity against Friday's close. On the other hand, semiconductor juggernaut NVIDIA Corp NVDA wasn't so lucky, slipping around 5% versus its previous end-of-session price.