Apple's services business is on track to become the size of a Fortune 100 company — but it's not yet big enough to truly catch the eye of Wall Street, one analyst told CNBC's "Power Lunch" on Wednesday.
"I think people are not really looking at the services business — they're not really ready," said Timothy Arcuri, managing director at Cowen and Company.
Apple reported mixed earnings on Tuesday night, as earnings beat expectations but revenue fell short as iPhone sales fell from a year ago. But the company's services business, which
Despite netting more than $7 billion in revenue during the quarter, the services business "is not really big enough yet to really do a true sum-of-the-parts [analysis]," Arcuri said.
"I think probably a year from now, maybe even two years from now, people will be much more willing to value the services business on its own," Arcuri said.
Because of this, Arcuri said the stock is "significantly undervalued." The stock was just slightly off of its all-time highs on Wednesday.