Direxion Bear ETF Up 4.17% After Nvidia Shares Slump Post-Earnings
Direxion Daily NVDA Bear 1X Shares jumped 4.17% as Nvidia stock slumped 4.13% following Q4 earnings, which featured 73% revenue growth and 75% data-center sales gains. Networking revenue surged 263%, underscoring AI infrastructure demand shifts that drive inverse-ETF volatility.
1. NVDD ETF Performance
Direxion Daily NVDA Bear 1X Shares (NVDD) climbed 4.17% on February 26 as Nvidia’s stock declined 4.13% following the company’s quarterly report. The fund’s inverse structure amplified the impact of the underlying share movement, delivering positive returns for bear-position holders.
2. Nvidia Earnings Highlights
Nvidia reported a 73% year-over-year increase in Q4 revenue and a 75% jump in data-center sales, while networking revenue exploded by 263%. Despite these gains, share prices fell, reflecting investor scrutiny over valuation and future guidance.
3. Implications for NVDD Investors
The sharp move demonstrates NVDD’s sensitivity to Nvidia’s earnings volatility, offering potential gains when shares retreat but posing heightened risk during rallies. Investors should monitor Nvidia’s forward outlook and sector capex trends, as these factors will drive NVDD’s future performance.