On CNBC's "Closing Bell," James Wang of ARK Invest spoke about things he will be watching in Apple's AAPL earnings report after Tuesday's close.
He thinks people are going to be looking for iPhone sales and, most importantly, the services segment. He wants to see sustained growth and margin improvement for services. He believes analysts are going to look not just for revenue growth, but also gross profit.
Wang expects Apple Watch sales to grow in the long term because it's following the iPhone's path. The insurance companies are distributing and providing subsidies for Apple Watch, which is going to make it cheaper. He thinks it could become an essential item for the elderly population.
The stock price is reasonable for people with the short-term view on the stock, said Wang. He thinks Apple is becoming a content and software distribution platform and it could easily be worth twice what it is worth right now.
Apple's stock traded around $208.16 per share at time of publication.
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