Editor's note: Any and all references to time frames longer than one trading day are for purposes of market context only, and not recommendations of any holding time frame. Daily rebalancing ETFs are not meant to be held unmonitored for long periods. If you don't have the resources, time or inclination to constantly monitor and manage your positions, leveraged and inverse ETFs are not for you.

Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in AAPL.

Apple Inc. (Ticker: AAPL) is having a rare off-year, down roughly 20% year-to-date as questions swirl around its innovation pipeline, product execution, and ability to compete in the generative AI race.

But the tech titan isn’t standing still. From rumored talks to acquire Perplexity AI to speculation about a stock split and fresh support from bullish analysts, Apple may be setting the stage for a narrative shift.

Below is a daily chart of AAPL, as of June 25, 2025.

Source: StockCharts.com.

Candlestick charts display the high and low (the stick) and the open and close price (the body) of a security for a specific period. If the body is filled, it means the close was lower than the open. If the body is empty, it means the close was higher than the open.

The performance data quoted represents past performance. Past performance does not guarantee future results.

This tug-of-war offers opportunity for traders, whether leaning into a rebound or positioning for further downside. Either way, the weeks ahead could be pivotal, especially with Apple currently expected to report quarterly earnings on August 7th (date subject to change).

Three Reasons to Take a Shine to AAPL

While Apple’s recent underperformance has drawn criticism, there are multiple catalysts that could support a bullish thesis, particularly for tactical traders focused on sentiment shifts and momentum rebounds.

Perplexity Talks Could Accelerate Apple’s AI Integration: According to multiple reports, including Investor’s Business Daily, Apple executives recently held preliminary talks to acquire Perplexity AI, a generative search startup with an estimated valuation of $14 billion. The move would help Apple address one of its key strategic vulnerabilities—its reliance on Google for search—and strengthen its in-house AI capabilities. With Microsoft, Meta, and Google already embedding AI into core products, Apple’s shift toward conversational search through Safari or Siri would mark a long-awaited response. While no deal is finalized, the mere possibility signals Apple’s intention to catch up fast.

Stock Split Buzz Could Spark Retail Momentum: Analysts and financial media have floated the possibility of a 2-for-1 or even 4-for-1 stock split, especially as Apple seeks to refresh retail enthusiasm. Historically, Apple has timed stock splits to coincide with strong product cycles and management confidence. For example, its last split in 2020 came shortly before a major rally. Apple is currently trading around $200 a share.

Wall Street Sees Potential Upside: Despite the recent weakness in the stock, Apple still commands significant analyst support. A recent report from 24/7 Wall St highlighted one expert’s call for more than 50% upside from current levels, citing strength in services, ecosystem loyalty, and monetization potential in AI and wearables. The contrarian bullish view? AAPL has already priced in a lot of bad news—and if sentiment flips, the rebound could be sharp.

Bearish Catalysts for AAPL

For all its brand strength, Apple still faces serious headwinds. Execution delays, hardware challenges, and regulatory risk continue to weigh on the stock and threaten to dampen any short-term bounce.

AI Disappointment and Legal Pressure: One of the clearest bearish signals has been growing doubt over Apple’s AI progress. A class-action lawsuit filed by shareholders accuses the company of overstating the readiness and capabilities of its “Apple Intelligence” rollout, which has reportedly been delayed to 2026. As The Motley Fool noted, this delay not only puts Apple behind rivals but also damages credibility—especially in a market hyper-focused on AI leadership.

Vision Pro Falters: Apple’s Vision Pro mixed reality headset was hyped as the next big platform—but sales and consumer enthusiasm have fallen short. Reports of production cuts and tepid demand have raised red flags about both the product’s appeal and the broader strategy around spatial computing. In a recent piece, The Motley Fool cited the Vision Pro as one of several reasons Apple is underperforming in 2025, warning that continued weakness could drag margins and undermine the innovation narrative.

Regulatory and Competitive Pressures: Apple is also under increasing scrutiny from regulators. The Department of Justice is investigating its default search partnership with Google’s Gemini AI and broader competitive practices. Meanwhile, in the AI arms race, Apple still lags infrastructure-heavy players like Microsoft, Nvidia, and even Amazon, who are building out their own foundational models and chips. According to Investor’s Business Daily, Apple’s edge in hardware design hasn’t yet translated to software dominance in AI—a gap that may widen if execution slips further.

Trading AAPL in Either Direxion with Single Stock Daily Leveraged & Inverse ETFs

Apple remains a polarizing stock in 2025: still a cash-rich, ecosystem-strong behemoth—but no longer immune to product flops, regulatory probes, or AI envy. The path forward likely hinges on whether its next moves—from potential acquisitions to capital structure shifts—can reset investor expectations.

For tactical traders, the Direxion Daily AAPL Bull 2X Shares (Ticker: AAPU) and Direxion Daily AAPL Bear 1X Shares (Ticker: AAPD) seek daily investment results, before fees and expenses, of 200% and 100% of the inverse (or opposite), respectively, of the performance of the common shares of Apple Inc.

*Definitions and Index Descriptions

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.

The Funds have derived all disclosures contained in this document regarding Apple Inc. from publicly available documents. In connection with the offering of each Fund’s securities, neither the Funds, the Trust, nor the Adviser or any of its respective affiliates has participated in the preparation of such documents. Neither the Funds, the Trust nor the Adviser or any of its respective affiliates makes any representation that such publicly available documents or any other publicly available information regarding Apple Inc. is accurate or complete. Furthermore, the Funds cannot give any assurance that all events occurring prior to the date hereof (including events that would affect the accuracy or completeness of the publicly available documents described above) that would affect the trading price of Apple Inc. have been publicly disclosed. Subsequent disclosure of any such events or the disclosure of or failure to disclose material future events concerning Apple Inc. could affect the value of a Fund’s investments with respect to Apple Inc. and therefore the value of the Funds.

Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund’s investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning.

Leverage Risk – The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund’s correlation with AAPL and may increase the volatility of the Bull Fund.

Daily Correlation Risk – A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with AAPL and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to AAPL is impacted by AAPL’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to AAPL at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to AAPL increases on days when AAPL is volatile near the close of the trading day.

Daily Inverse Correlation Risk – A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with AAPL and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to AAPL is impacted by AAPL’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to AAPL at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to AAPL increases on days when AAPL is volatile near the close of the trading day.

Technology Sector Risk — The market prices of technology-related securities tend to exhibit a greater degree of market risk and sharp price fluctuations than other types of securities. These securities may fall in and out of favor with investors rapidly, which may cause sudden selling and dramatically lower market prices.

Apple Inc. Investing Risk — In addition to the risks associated with companies in the technology sector, Apple Inc. faces risks related to market conditions, market disruptions, competition, managing the frequent introductions and transitions of products and services; as well as the outsourced manufacturing and logistical services provided by partners. Issuer-specific attributes may cause an investment held by a Fund to be more volatile than the market generally. The value of an individual security or particular type of security may be more volatile than the market as a whole and may perform differently from the value of the market as a whole.

Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Industry Concentration Risk, Market Risk, Indirect Investment Risk, and Cash Transaction Risk. Additionally, for the Direxion Daily AAPL Bear 1X Shares, Shorting or Inverse Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.

ALPS Distributors, Inc.