Matt Frankel

They gave fantastic first quarter guidance.

I have to think that's the main reason we're seeing the stock rally higher.

On Microsoft, you really hit the nail on the head with the open AI concern.

Look how much Oracle is off of its highs recently.

OpenAI is substantially all of their backlog.

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.