Apple Manages to Avoid Layoffs, Starts New Year Strong | ETF Trends

Mass layoffs have hit big tech, especially after last year’s broad weakness in the sector. However, iPhone maker Apple is ousting its big tech peers by keeping its workforce relatively intact.

It’s certainly a departure from the cost-cutting strategies most big tech companies are resorting to after a tumultuous 2022 fraught with lower profitability forecasts. Big tech names like Microsoft, Google, and Amazon have responded in tow by reducing their work forces in response to the economic weakness — except Apple.

“No company is certain to avoid significant cutbacks in an economic environment as volatile as the current one, and Apple isn’t immune to the business challenges that have hit other tech giants,” a Wall Street Journal article said. “It is expected next month to report its first quarterly sales decline in more than three years. Apple has also slowed hiring in some areas.”

That said, what exactly is Apple doing to stay afloat while these other big tech companies are treading water? As the WSJ article mentioned, one of them is avoiding an excess of hiring, especially during the pandemic when big tech gained most of its recent strength.

Another reason is the resilience of its product demand, particularly the iPhone. Whether the market is experiencing upside or downside, consumers still need their phones and in the current market, iPhone reigns supreme.

“In its September quarter, Apple reported that sales at its most important business—the iPhone—advanced 9.7% from the previous year to $42.6 billion, surpassing analyst estimates,” the WSJ article noted.

2 ETFs to Play Apple in 2023

Traders can give single-stock exchange traded funds (ETFs) a look if they sense upside in Apple, especially if the current trend holds up. One fund to consider is the Direxion Daily AAPL Bull 1.5X (AAPU), which seeks daily investment results equal to 150% of the performance of the common shares of Apple, Inc.

Having the flexibility to move with the markets is an ideal tool for traders to have. That said, Direxion Investments also has inverse ETFs that can take the opposite side of a trade when bullish notions start to turn against a trader.

That said, traders can also look at the Direxion Daily AAPL Bear 1X Shares (AAPD). The fund essentially takes the inverse side of AAPU, allowing traders to hedge their bets if necessary.

As mentioned in the fund descriptions, both ETFs offer just a dose of leverage for extra profit potential. That gives traders the ability to maximize gains without over-leveraging themselves.

AAPL Chart

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