Shares of Microsoft (MSFT) - Get Report jumped $4.25 per share in early Friday trading, hitting new all-time highs at $140.67 after the company reported fourth-quarter earnings.

The company reported GAAP earnings of $1.71 per share, which cruised past estimates by 50 cents per share. Non-GAAP earnings of $1.37 per share topped expectations by 16 cents. It gets better, though. Revenue of $33.72 billion jumped 12.1% and crushed estimates by $920 million.

For its coming fiscal year, Microsoft management still expects double-digit revenue growth. The midpoint of management's first-quarter outlook came in ahead of expectations as well.

Why then are shares are up just 1.35% after such a strong report? While the stock backed off its highs coming into the report -- down by just over 2% -- it was still up more than 33% for the year and sporting a $1 trillion market cap. In other words, the bar was set pretty high. 

On Friday, it's leading the way in terms of big tech, with a mixed picture from FAANG. Apple (AAPL) - Get Report , Alphabet (GOOGL) - Get Report (GOOG) - Get Report and Netflix (NFLX) - Get Report are all in negative territory in midday trading, while Amazon (AMZN) - Get Report and Facebook (FB) - Get Report are just north of break-even for the session.

If Microsoft stock can't rally on these strong results, what can it rally on?

Microsoft, Apple, Alphabet, Apple and Facebook are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells MSFT, AAPL, GOOGL, AMZN and FB? Learn more now.

Trading Microsoft Stock

Daily chart of Microsoft stock.

Microsoft Hits New Highs on Robust Results and Guidance: 10 Key Takeaways

Microsoft stock reversed off the $135 level on Thursday and closed above the rising 20-day moving average after falling below that mark earlier in the session. Shares then gapped higher on Friday to new highs -- clearing last month's high at $139.40 and this month's high at ~$139.50 -- before fading off its opening levels.

That leaves investors in a bit of a tricky spot. Ideally, MSFT stock will hold above last month's high, but even more ideal than that would be a close north of this month's prior high.

At the end of the day, though, Microsoft stock is still in a well-defined uptrend and is being continually buoyed by its 20-day and 50-day moving averages. Until that ends, this name is a buy-on-dips candidate.

Bulls can stay long the tech giant so long as it holds the $138.40 to $139.50 area. Below this area and Microsoft could fill the gap down to its 20-day moving average and Thursday's closing price at $136.42.

If we get a slight decline in Microsoft stock before it reclaims the $138.40 to $139.50 area, nimble bulls can try a long position, too. So long as MSFT stock is north of $135, though, I would feel comfortable being long the stock. Below and a test of the 50-day is in order.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.