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Pro: If Apple Doesn't Deliver 'Wow' Factor, Stock Will Sell Off

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Speaking to Benzinga, Sarhan Capital Founder and CEO Adam Sarhan said that Apple Inc. (NASDAQ: AAPL) investors need to see the "wow" factor out of the Apple Watch in Monday's media event.

"If they're able to deliver the ‘wow' factor, the stock is going much higher," he said.

Sarhan explained that Apple is in a unique situation, because watches in general have lost their status of a functional item that tells time. Nowadays, people only sport a watch for fashion, status, comfort, etc.

What that means, Sarhan explained, is that Apple has a chance to blow investors out of the water with another "game changer" that would revolutionize the way people wear watches, like the company revolutionized music players with the iPod and smartphones with the iPhone.

Related Link: Why This Analyst Thinks Apple Watch Will Be 'Phenomenally Successful'

Investors will also be watching to see if CEO Tim Cook can deliver another successful product, Sarhan said. In the few years that Cook has been the chief executive, Sarhan added, all of the product launches besides the iPhone 6 have been flops.

"The bar is set very high. If he's not able to deliver the ‘wow' factor, there's a very real possibility that the stock will sell-off hard," he said.

Brianna Valleskey contributed to this report.

 

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