Apple’s stock has been soaring the past year with a gain of over 30%, but some analysts might be unleashing the bears on its stock in 2024. With that, traders can take advantage of single-stock ETFs to capitalize on any short-term weakness Apple’s stock may exhibit.
Given its 2023 stock price comeback after 2022’s bearish run, it might seem that Apple is far from being on shaky ground. However, a closer look at its revenue growth paints a different picture.
“In fiscal year 2023, Apple reported negative revenue growth in all four quarters. It was the first time since 2001 that the company’s revenues fell YoY for four straight quarters,” reported Barchart.
Furthermore, investor confidence was shaken given the company’s revenue outlook heading into 2024. When juxtaposed with its FAANG peers, Apple also appears to be lagging with respect to it financials.
“Apple’s commentary on the revenue outlook for the December quarter failed to instill confidence, either, as it forecasted revenues “similar” to the corresponding quarter last year,” Barchart’s report added, noting that “the company’s FAANG peers mostly impressed markets with both their top-line and bottom-line results last year, and markets rewarded them commensurately after the 2022 crash.”
2 ETFs for Apple Bears and Bulls
As mentioned, single-stock ETF exposure can give traders the opportunity to make a bearish play on Apple’ stock. This is available with the Direxion Daily AAPL Bear 1X Shares (AAPD). With additional holiday retail sales data releasing, this may note bode well for Apple according to a Bloomberg report. This could traders a chance to pounce on AAPD.
Alternatively, short-term traders can also benefit from short-term price jumps via the Direxion Daily AAPL Bull 1.5X (AAPU). The fund add 50% more exposure to additional profit potential if Apple’s stock trends higher if, for example, revenue growth occurs due to stronger-than-expected earnings results.
Additionally, traders can also play the bullish side of FAANG stocks in general as opposed to single-stock ETF plays. For this, they can consider the Direxion Daily Select Large Caps & FANGs Bull 2X Shares (FNGG).
FNGG gives traders targeted exposure to the FAANG stocks without having to hold separate positions in each stock. Furthermore, with double the exposure, traders can amplify their gains should their bets prove correct. FNGG seeks to achieve 200% of the daily performance of the ICE FANG 20 Index, which provides exposure to highly-traded technology and technology-enabled companies, such as the aforementioned FAANG stocks.
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