The "Fast Money" traders debated whether it's worth chasing the rally in Microsoft after the company posted an earnings beat driven by continued growth in its cloud business.
The stock climbed above its 1999 all-time high of $59.97 in extended trade.
Trader Brian Kelly said he would not chase the rally in Microsoft, but would be interested in it on a pullback.
"Everything that these guys said is exactly what everybody in this market now wants. There's very few stocks out there that have this type of growth, that have a dividend, that have a strong management team ... so Microsoft is going to attract a lot of investment money," Kelly said.
Trader Karen Finerman agreed, but added that Microsoft's current valuation — about a 27 price-to-earnings ratio on a trailing basis — is much more appetizing than it was 17 years ago.
Trader Dan Nathan said that a large portion of Microsoft's revenue still comes from its legacy businesses and that the current valuation is still too rich. He said there's a risk that the growth of the cloud business could slow down.
Trader Tim Seymour disagreed, saying that Microsoft could still increase margins and market share.