Wedbush's reaffirmation of its "Outperform" rating for Apple Inc. (AAPL) comes amid potential regulatory challenges in China, where authorities are considering an investigation into Apple's App Store fees and policies. This development is part of the ongoing US-China tech tensions, but Wedbush downplays the risk, noting Apple's limited revenue exposure in China from App Store activities. Despite these concerns, the firm remains optimistic about Apple's growth prospects in China, projecting a potential rebound by the June quarter. CEO Tim Cook's adept handling of US-China relations is seen as a key factor in navigating these challenges, with the broader geopolitical landscape, including US tariffs and trade negotiations, also playing a role in shaping Apple's market dynamics.
The Direxion Daily AAPL Bull 1.5X Shares (AAPU) ETF experienced a decline, dropping 3.82% to $30.69 as of 8:00 AM on Wednesday, February 5.