Matt Frankel

But with Microsoft, it makes up 45% of the company's remaining performance obligation, or RPO, which we call the backlog.

CapEx turned out to be higher than expected in the fourth quarter.

I think that made the slowdown in cloud revenue, which wasn't a big slowdown.

It was 39% this quarter vs. 40% a year ago.

It made it a little bit worse in the minds of investors.

The stock has been largely priced for perfection recently, though.

Even after falling 25% from its 52-week high, yes, Microsoft is officially in a bear market.

Microsoft trades for 30X earnings now.

That's after a 25% decline.

I'm watching Southwest Airlines, ticker LUV, although maybe not enough to actually buy an airline stock, but it's really interesting right now.

It's up more than 15% today after earnings as we're recording this.

The short answer is that its management finally decided to join its competitors in caring about profitability by ending the long-standing free bags policy.

Just yesterday, they ended their open seating policy, which had been a big differentiator for a long time.

Their guidance calls for at least $4 in earnings per share this year.

Analysts were expecting closer to $3.

That gives it a price to earnings of less than $12 even after this move.

With revenue per seat mile, essentially how much they're making off each passenger rising by almost 10% as travelers pay for things that were previously free.

I would say that over the years, Southwest's biggest strength has been its best-in-breed balance sheet.

It's got under $5 billion of total debt compared with a $25 billion market cap.

For context, American Airlines has about a $9 billion market cap and $43 billion in debt.