The Defiance Daily Target 1.75X Long MSTR ETF (MSTX), a leveraged exchange-traded fund that tracks the performance of MicroStrategy stock with 1.75x daily leverage, experienced a significant pre-market plunge of 9.51% on Tuesday, October 30th.
The sharp decline in MSTX's price can be attributed to growing investor concerns and bearish sentiment surrounding MicroStrategy's (MSTR) highly anticipated third-quarter earnings report, scheduled for release after the market close.
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 potentially 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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