TQQQ stock is trending, but why is it so volatile right now? 

The TQQQ ETF (NASDAQ: TQQQ) has some newfound popularity today, as searchers as far abroad as Hong Kong, South Korea and Israel searched it on Google. But why?

What is TQQQ ETF? 

The ProShares UltraPro QQQ (or TQQQ) is a Proshares ETF which tracks and mirrors the  daily investment results that correspond, before fees and expenses, to 3x the daily performance of the Nasdaq index. 

This means that, should the Nasdaq index post gains of three percent in a day, the TQQQ ETF will post gains of nine percent. Similarly, if the Nasdaq loses five percent of its value in a single day, theoretically the TQQQ ETF would lose a staggering 15 percent. 

In this way, TQQQ stock magnifies both profits and losses of the Nasdaq. 

Why is the TQQQ ETF so volatile right now? 

Because the TQQQ ETF amplifies both profits and losses up to three times, it can be a rather ‘noisy’ chart. 

And, indeed, this week has been especially loud, with the Nasdaq fluctuating particularly much. The TQQQ stock price chart showed that the ETF was down almost five percent on February 13th, only to bounce up 3.54 percent on February 14th. By February 17th, it was down almost three percent again. 

 This occurred because of the exaggeration of the Nasdaq’s own movements. 

Why is TQQQ ETF trending? 

 The Nasdaq index has been a hive of activity lately, with many of the index’s biggest companies in terms of market cap - such as Tesla, Apple, Microsoft, Alphabet/Google, Meta Platforms and AMD - all posting their full year 2023 financial results recently. 

But the biggest Nasdaq company of all in terms of performance in the 2023 year with, with their stock price rocketing up more than two hundred percent, is Nvidia (NVDA). 

And Nvidia is posting their earnings tomorrow afternoon, which are sure to be crowd pleasers. 

This will undoubtedly cause the Nasdaq index to spike, which in turn will cause the TQQQ stock price to go even more parabolic. 

So, tomorrow looks likely to be a good day for TQQQ ETF investors. You heard it here first…