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 SHOP.

Following a blockbuster earnings report, shares of Shopify, Inc. (Ticker: SHOP) exploded to a new multi-year high. Share prices are encroaching on their all-time highs now, and the big question is whether bulls can make a final push, or if bears can take advantage of some complacency in the market?

Adapting to a New Consumer Landscape

Shopify remains a powerhouse in the e-commerce ecosystem, empowering businesses of all sizes with its robust platform for online stores, payment processing, and point-of-sale solutions. The company’s tools, such as Shopify Payments and Shop Pay, streamline transactions, while its integrations with social media marketplaces and logistics solutions enhance merchant flexibility. Shopify’s focus on AI-driven features, like personalized storefront recommendations and automated marketing tools, positions it as a leader in the digital commerce space.

The company’s core strengths—e-commerce platform services, payment processing, and a growing app ecosystem—drive a loyal merchant base and significant market share globally. Additionally, Shopify’s expansion into enterprise solutions, international markets, and offerings like Shopify Plus for larger businesses underscores its diversified growth strategy.

Shopify’s growth depends on expanding its merchant base, enhancing AI capabilities, and scaling its global fulfillment network. Their strategic partnerships with major platforms like Amazon, TikTok, and Meta, alongside investments in logistics and AI-driven analytics, keep its long-term growth prospects intact. They also have projects like Shopify’s Balance debit card and carbon-neutral shipping initiatives, which could further differentiate it in the competitive e-commerce landscape.

Traders that think bulls can push Shopify to new all-time highs may find a trade with Direxion’s Daily SHOP Bull 2X ETF (Ticker: SHPU), which seeks daily investment results, before fees and expenses, of 200% of the performance of Shopify, Inc. common stock (Ticker: SHOP).

Below is a daily chart of SHOP as of August 14, 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.

The Battle for Spent Dollars

Some of the notable competition for Shopify comes from rivals like Amazon, WooCommerce, and BigCommerce. These competitors could offer lower-cost or more innovative solutions to entice consumers to spend with them instead of Shopify.

Economic conditions are another concern. As a company tied to consumer spending and merchant success, Shopify is sensitive to macroeconomic shifts, especially given their unique exposure to small and mid-sized businesses. Traders should watch for the next Consumer Price Index (CPI)* report, expected on September 11, 2025. A hotter-than-expected report could signal rising inflation*, potentially reducing consumer spending and merchant growth, which might lower Shopify’s forward earnings expectations and pressure the stock.

In this scenario, Direxion’s Daily SHOP Bear 1X ETF (Ticker: SHPD), which seeks daily investment results, before fees and expenses, of 100% of the inverse performance in common shares of Shopify, Inc. (Ticker: SHOP) could provide an opportunity to attempt to capitalize on some downside price action.

*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.

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 SHOP 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 SHOP and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to SHOP is impacted by SHOP’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to SHOP at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to SHOP increases on days when SHOP 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 SHOP and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to SHOP is impacted by SHOP’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to SHOP at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to SHOP increases on days when SHOP is volatile near the close of the trading day.

Shopify, Inc. Investing Risk – SHOP faces risks associated with: growth may be difficult to sustain; highly competitive business structure; data breach and privacy concerns; impact of the global economic conditions may adversely affect business operations; reliance on limited number of suppliers for payment processing; use of artificial intelligence may present additional risks; among other risks.

Information Technology Sector Risk — The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and competition, both domestically and internationally, including competition from competitors with lower production cost.

Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Concentration Risk, Market Risk, Non-Affiliation Risk, Security Volatility Risk and Cash Transaction Risk. Additionally, for the Direxion Daily SHOP Bear 1X ETF, 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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