The Tradr 2X Long SNDK Daily ETF (SNXX) fell 5.13% in pre-market trading on Thursday, reflecting heightened negative sentiment towards its underlying asset, SanDisk Corp.

The decline follows a critical analyst report highlighting concerns over SanDisk's business model and valuation. The report points out flaws in SanDisk's long-term contracts, which use floating pricing that may not protect against future price declines as new capacity enters the market. Additionally, SanDisk's current valuation is seen as elevated, with a discounted cash flow model suggesting significant downside potential, leading to a "Sell" rating.

As a leveraged ETF tracking SanDisk, SNXX is sensitive to such negative fundamental analysis, which may have prompted pre-market selling pressure.