Blockchain technology to boost Microsoft earnings, trader says

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.

• KeyBanc analysts wrote earlier this month that Amazon lost cloud market share to Microsoft in the fourth quarter.

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.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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