Apple Watch Ban Isn't Hurting Stock Performance in Short-Term

Up about 60% for the year and a shade over 3% within the past month, Apple’s stock is continuing its upward momentum. That’s despite recently being ordered to halt sales of the latest versions of its Apple Watch thanks to losing a patent dispute.

Per the aforementioned link to a Fortune report, the International Trade Commission (ITC) ruled that Apple violated patent laws related to healthcare technology company Masimo based in Irvine, California. The Apple Watch devices in question contain a blood oxygen sensor that Masimo said it invented.

“Sales of the Apple Watch Series 9 and Ultra 2 will be halted on the company’s online store on Dec. 21 and at its physical retail locations beginning on Christmas Eve,” Fortune reported.

How this impacts the company’s revenue remains to be seen. But if the current stock price’s performance is any indicator, it could simply be a minor speed bump. According to data from FourWeekMBA, $41.2 billion in sales revenue came from wearables in 2022. That would most likely include the Apple Watch. On the top of that list, of course, is the iPhone.

Sentiment for Apple stock is largely bullish heading into the new year. The iPhone maker hit $3 trillion in market capitalization this year. Market experts are already predicting Apple could hit the $4 trillion mark in 2024.

Bulls and Bears Can Benefit

The macroeconomic tailwinds of lower interest rates in 2024 should also feed into more bullishness for Apple stock. But it will also have to continue innovating to maintain its growth trajectory. That will mean continued improvement of current products and potentially revealing something that could shake up the industry, like a folding iPhone or Apple car.

“Of course, Apple will remain one of the most important companies in the world. But I expect the stock will be range-bound in 2024,” wrote Louis Navellier in Kiplinger. “The reason is simple: There is no catalyst to jumpstart growth for the foreseeable future. Even the rumor mill is perilously thin with nothing firm on a time frame for a foldable phone, much less an Apple car.”

If the stock does become rangebound, that up and down price movement could benefit short-term traders. For dips in prices, they can consider the Direxion Daily AAPL Bear 1X Shares (AAPD). Alternatively, price increases can benefit the Direxion Daily AAPL Bull 1.5X (AAPU). Both funds add 50% more exposure to additional profit potential if Apple’s stock trends lower or higher.

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