Direxion launched the Direxion Daily BABA Bull 2X ETF (ticker: BABU). The fund targets 200% of the daily performance of Alibaba Group stock. This leveraged product allows sophisticated investors to magnify short-term bullish positions.
Alibaba reports quarterly earnings on February 18. Analysts anticipate revenue growth. They also expect a year-over-year profit decline. Market focus centers on the performance of cloud and AI divisions.
Leverage and compounding risks make the ETF unsuitable for long holding periods.