Apple (AAPL) recently delivered results for the March quarter, but the technology giant still has plenty of catalysts that could spark the Direxion Daily AAPL Bull 2X Shares (AAPU ).
In fact, that ETF, which is designed to deliver 200% of the daily performance of Apple shares, could be an ally for risk-tolerant traders in the months ahead. Why? For one, iPhone 17 sales are looking sturdy. During the March quarter, Apple’s sales jumped 17% to $111 billion, helped by a 22% increase in iPhone revenue. Some of that demand is being driven by large markets outside the U.S.
“The iPhone’s growth, led by the iPhone 17, continues to impress, particularly in China. We also appreciate strong profitability amid steep memory price inflation,” noted Morningstar’s William Kerwin. “We believe high growth will continue through the year, led by strong iPhone 17 uptake and a pent-up refresh cycle.”
iPhone Could Dial Up AAPU Opportunity
In what could be a catalyst for AAPU, the iPhone 17 cycle is Apple’s best in five years. As Kerwin pointed out, the ebullience isn’t driven by artificial intelligence (AI). Instead, Apple is sticking to its core competencies: top-notch hardware, stylish design, and an increasingly attractive software package. So, as the cycle evolves, it’s possible there will be opportunities to capitalize with AAPU.
Another point in Apple’s favor — which could provide runway to AAPU — is the company’s effort to mitigate surging memory costs.
“Against skyrocketing memory prices, we credit Apple for raising base iPhone storage capacities for a margin cushion and for excellent supply chain management through long-term contracts,” added Kerwin. “Apple expects stronger memory cost headwinds in future quarters, but these remain a low impact to us.”
Alone, positive iPhone commentary could be a case for AAPU usage. But if Wall Street sees growth in Apple’s services division — already one of the company’s major cash cows — that could be another spark for short-term use of AAPU.
“We forecast iPhone leading the majority of sales. After a superb 2026, we expect a return to mid-single-digit growth long term. We expect services to complement iPhone revenue, rising in the double digits through 2030, led by Google’s Search payments and App Store revenue,” concluded Kerwin.
While only experienced traders should use leveraged products, Direxion has a dedicated education center those interested in learning more about these funds.
For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.
