Apple Inc.'s reaffirmed "Buy" rating by BofA Global Research has bolstered investor confidence, particularly with the report highlighting significant growth in the company's App Store. The App Store's global revenue surged by 18% y/y, with a notable 17% y/y increase in China and a 48% y/y rise in the Productivity app category, driven by the popularity of ChatGPT. This diversification away from the Gaming segment is seen as a positive development, despite potential risks from the EU's Digital Markets Act, which could impact user safety through app sideloading. BofA's projections of 12% y/y growth in services revenue for F2Q25, with a full-year estimate of 13% y/y growth, suggest a strong outlook for Apple's services segment.
The Direxion Daily AAPL Bull 1.5X Shares (AAPU) ETF rose 1.24% to $31.04 at 10:20 AM on Tuesday, February 4.