Direxion Semiconductor ETF Plummets 20.9% Amid Market Rotation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy QCOM?
Source: Fool
- Leveraged ETF Risks Exposed: The Direxion Daily Semiconductor Bull 3X ETF fell as much as 20.9% today, reflecting investor concerns over high valuations in the chip sector and highlighting the vulnerability of leveraged funds during market volatility.
- Major Holdings Decline: All top ten holdings of the ETF experienced declines, with Micron Technology down 6% and Qualcomm down 15%, while Nvidia only fell 0.5%, indicating varying performances among companies amid economic uncertainty.
- Economic Data Impacting Investor Sentiment: Weak economic data has led to decreased expectations for low-cost loans, putting pressure on businesses reliant on financing and investors seeking higher returns, further exacerbating market volatility.
- Long-Term Underperformance: Despite the Direxion ETF failing to achieve double the returns of the non-leveraged iShares Semiconductor ETF over the past five years, its high expense ratios and hidden costs pose significant survival challenges in the long run.
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Analyst Views on QCOM
Wall Street analysts forecast QCOM stock price to fall
16 Analyst Rating
10 Buy
5 Hold
1 Sell
Moderate Buy
Current: 213.170
Low
165.00
Averages
197.14
High
225.00
Current: 213.170
Low
165.00
Averages
197.14
High
225.00
About QCOM
Qualcomm Incorporated is engaged in the development and commercialization of foundational technologies for the wireless industry, including third generation (3G), fourth generation (4G) and fifth generation (5G) wireless connectivity, and high-performance and low-power computing, including on-device artificial intelligence. Its segments include Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Strategic Initiatives. QCT develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies, including radio frequency front-end, digital cockpit and advanced driver assistance and automated driving, Internet of things including consumer electronic devices, industrial devices and edge networking products. QTL grants licenses or otherwise provides rights to use portions of its intellectual property portfolio that includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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