EXCLUSIVE: Meta AI and Metaverse Growth Drive Launch of New Direxion Leveraged and Inverse ETFs – Meta Platforms (NASDAQ: META), Direxion Daily META Bear 1X Stock (NASDAQ: METD), Direxion Daily META Bull 2X Stock (NASDAQ:METU)

In an exclusive interview with Benzinga, Ed EgilinskyManaging Director and Head of Sales, Distribution and Alternatives at Direxion, spoke about the Direxion Daily META Bull 2X Stock METU and Direxion Daily META Bear 1X Stock METD. These ETFs seek to meet growing trader demand for leveraged and inverse securities. Single Stock ETF.

Egilinsky stated that the inclusion of Meta Platforms Inc META in their lineup was a natural progression, given that “META was the Mag 7’s only omission from our lineup of unique leveraged and reverse actions.” Meta’s prominence in the AI ​​movement and its frequent presence in the media make it an attractive stock for traders looking to capitalize on short-term price movements.

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Impact of Meta innovations

Meta shares have seen substantial growth over the past few years, “driven by their core social media platform businesses, combined with potential new growth drivers within the AI ​​(Meta AI) and space/ virtual reality metaverse,” Egilinsky said. “There will certainly be enough enablers, including possible regulatory hurdles,” he added.

These developments could influence the performance of METU and METD, providing traders with various catalysts to consider. Simply put, these ETFs offer “traders the opportunity to capitalize on short-term price movements of stocks, regardless of their direction,” Egilinsky said.

“Time will tell if Meta continues to grow revenue and support its current valuation or even higher,” Egilinsky said. It all depends on its ability to overcome potential regulatory challenges and continue to innovate.

Read also: Meta faces growing risk of free cash flow burn as creator payments scale, analyst says

Opportunity for Meta-concentrate Active traders

“Meta is one of the most widely held stocks,” Egilinsky said, and is known for significant developments and innovation in AI and the metaverse. These factors create numerous trading opportunities, making new ETFs attractive to active traders.

Egilinsky emphasizes that METU and METD are designed for those looking to take advantage of short-term business opportunities.

Meta is a key player in the Magnificent Seven, a group of stocks with significant market impact. S&P500 And NASDAQ100.

• For investors making substantial gains in Meta stocks, METD offers a way to hedge and protect those gains.
• Conversely, traders optimistic about Meta’s continued growth can use METU to amplify their returns.

Egilinsky emphasizes, however, that these ETFs require daily monitoring and are not suitable as long-term investments.

Egilinsky’s Caution for Meta-Stock Investors

Egilinsky advises potential traders to understand the mechanics of these ETFs before jumping into them. “These should not be viewed in the same way as owning common stocks, as there is additional risk associated with leveraged and inverse ETFs. A potential trader should understand the mechanics of how leveraged and inverse ETFs work before considering trading them,” he added.

Thanks to Meta’s continued innovations and significant market presence, these ETFs present unique opportunities for those prepared to manage their inherent complexities and risks.

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