Microsoft is set to report quarterly earnings Wednesday after the bell, and one trader is bullish on the name in part because of the tech giant’s foray into the world of blockchain technology.
The stock, which hit an all-time high Monday, looks well-positioned into earnings, said Michael Bapis, partner and managing director at the Bapis Group at HighTower Advisors, Tuesday on CNBC’s “Trading Nation.” Here are his reasons why.
• Microsoft has made strides in the blockchain technology space. Last year the company was involved in a blockchain initiative related to marine insurance.
• The company has, too, expanded its footprint in the cloud computing and gaming space. On Monday, Microsoft said it had acquired a start-up with cloud-based tools for game developers.
The stock fell 1 percent Tuesday, closing negative for its second straight day, amid a broad market sell-off.
Bottom line: One trader is bullish on Microsoft ahead of its quarterly earnings report.
Blockchain technology to boost Microsoft earnings, trader says