Apple may not need to rely as heavily on iPhone sales to get the company through the rest of 2024. That’s because its services and artificial intelligence could help shore up revenue in the interim.
In a time where consumers are getting hit with inflation, Apple has been expanding its buy-now, pay-later services. That appears to be helping shore up the company’s revenue. And that will allow consumers to stay financially flexible in times of rising consumer prices.
“The Cupertino, California-based company said its overall services category — which includes payments — also logged a record, generating $24.21 billion in revenue for the quarter,” confirmed Payments Dive. “That figure represents a 14% increase over the same period in 2023.”
Additionally, Apple is also primed to compete with its big tech peers in the AI arena. As the Wall Street Journal reported, buzz around Apple Intelligence should help mask lagging iPhone sales.
“We think Apple Intelligence will provide yet another compelling reason for customers to upgrade,” said Apple Chief Financial Officer Luca Maestri.
If Apple continues to prosper, look for funds like the Direxion Daily AAPL Bull 2X (AAPU) to also benefit. The fund adds double the exposure to the company’s stock, increasing the potential for gains. Apple’s stock is up over 20% so far for the year, and with the extra leverage, AAPU is up 40%.
A Broad AI Play
With big tech names like Apple rallying around the AI theme, this trend may continue to persist. Even with the Aug. 5 sell-off, the Nasdaq-100 is continuing its upward trajectory, with AI helping to lead the path to higher highs.
If this continues to be the case, traders should continue riding the momentum with the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF (UBOT). The fund seeks daily investment results equal to 200% of the daily performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index. The index aims to provide exposure to exchange-listed companies in developed markets it expects will benefit from the adoption and usage of robotics and/or AI.
UBOT is up 12% for the year. And given the explosive growth potential of AI, that could make for additional short-burst gains that will allow traders more opportunities. According to a PWC article, AI has the potential to add $15.7 trillion to the global economy by the year 2035. China and the U.S. will benefit the most from the growth of AI, with a 70% global impact.
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