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. If you don't have the resources, time or inclination to constantly monitor and manage your positions, leveraged and inverse ETFs are not for you.

Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in META.

Shares of Meta Platforms, Inc. (Ticker: META) have been on a torrid rally since the April 21 low at 479.43, appreciating over 50% off the bottom. This Magnificent Seven name has helped power the equity indices back to new all-time highs. But as the stock has started going sideways for the past couple of weeks, can it regain its momentum? Or is it due for a corrective pullback?

From Quest to WhatsApp—META’s Empire Expands

Meta remains a dominant force in social media, advertising, and artificial intelligence. One could argue that it’s emerging as the leader within the AI space as well, with its LLaMA models and AI-driven ad targeting, Meta has reinforced itself as a leader in the tech sector. Its platforms—Facebook, Instagram, WhatsApp, and others—boast billions of active users, creating a robust advertising revenue stream. A large segment of the population spends most of their time online with one of these platforms.

Plus, its Reality Labs division continues to push boundaries in virtual and augmented reality, with products like the Quest headset driving innovation in the metaverse space. Meta’s revenue growth is supported by its massive user base and expanding AI capabilities, which enhance ad efficiency and user engagement.

Meta’s strategic partnerships with advertisers and investments in AI infrastructure further bolster its long-term outlook. The global demand for digital advertising and immersive technologies could fuel significant revenue growth, supporting META’s stock price.

Traders that think Meta can continue its upside momentum can find a trade with Direxion’s Daily META Bull 2X Shares (Ticker: METU), which seeks daily investment results, before fees and expenses, of 200% of the performance of Meta Platforms, Inc. common stock (Ticker: META).

Below is a daily chart of META as of July 10, 2025.

Source: TradingView.com

Candlestick charts display the high and low (the stick) and the open and close price (the body) of a security for a specific period. If the body is filled, it means the close was lower than the open. If the body is empty, it means the close was higher than the open.

The performance data quoted represents past performance. Past performance does not guarantee future results.

If Earnings Miss or Guidance Slips, Could METD Pop?

Meta is still a company in the real world, and it continues to face ongoing challenges, including regulatory scrutiny over data privacy, antitrust concerns, and content moderation practices.

Investigations in the U.S. and Europe could lead to fines, restrictions, or operational changes, impacting profitability. Additionally, competition from platforms like TikTok, X, and emerging AI-driven services could pressure Meta’s market share, especially if competitors offer more innovative or cost-effective solutions.
Meta’s next earnings report, expected on July 30, will be critical. Weak guidance or disappointing results, particularly in ad revenue or metaverse investments, could weigh on the stock.

If Meta stock doesn’t live up to expectations, Direxion’s Daily META Bear 1X Shares (Ticker: METD), which seeks daily investment results, before fees and expenses, of 100% of the inverse performance in common shares of Meta Platforms, Inc. (Ticker: META) could provide an opportunity to take advantage on the downside.

*Definitions and Index Descriptions

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.

The Funds have derived all disclosures contained in this document regarding Meta Platforms, Inc. from publicly available documents. In connection with the offering of each Fund’s securities, neither the Funds, the Trust, nor the Adviser or any of its respective affiliates has participated in the preparation of such documents. Neither the Funds, the Trust nor the Adviser or any of its respective affiliates makes any representation that such publicly available documents or any other publicly available information regarding Meta Platforms, Inc. is accurate or complete. Furthermore, the Funds cannot give any assurance that all events occurring prior to the date hereof (including events that would affect the accuracy or completeness of the publicly available documents described above) that would affect the trading price of Meta Platforms, Inc. have been publicly disclosed. Subsequent disclosure of any such events or the disclosure of or failure to disclose material future events concerning Meta Platforms, Inc. could affect the value of a Fund’s investments with respect to Meta Platforms, Inc. and therefore the value of the Funds.

Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund’s investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning.

Leverage Risk – The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund’s correlation with META and may increase the volatility of the Bull Fund.

Daily Correlation Risk – A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with META and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to META is impacted by META’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to META at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to META increases on days when META is volatile near the close of the trading day.

Daily Inverse Correlation Risk – A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with META and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to META is impacted by META’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to META at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to META increases on days when META is volatile near the close of the trading day.

Meta Platforms, Inc. Investing Risk — Meta Platforms, Inc. is subject to a number of risks related to: its product offerings; business operations and financial results; government regulation and enforcement; the ability to collect and use consumer data; data, security and intellectual property; and the dual class structure of the company’s common stock, which limits the ability of shareholders to influence corporate matters.

Technology Sector Risk — The market prices of technology-related securities tend to exhibit a greater degree of market risk and sharp price fluctuations than other types of securities. These securities may fall in and out of favor with investors rapidly, which may cause sudden selling and dramatically lower market prices.

Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Industry Concentration Risk, Market Risk, Indirect Investment Risk, and Cash Transaction Risk. Additionally, for the Direxion Daily META Bear 1X Shares, Shorting or Inverse Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.

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