This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Oracle View Still Cloudy

Oracle's (ORCL - Get Report) strong third quarter showed the database giant is making the most of an expensive acquisition binge.

But as with Adobe's (ADBE - Get Report) solid results, Oracle's numbers left unanswered a bigger question: How strong is tech spending?

Solid performances by the two key software vendors, said Goldman Sachs analyst Christopher Sailer, shed little light on the state of information technology spending. Indeed, when asked on a conference call, Oracle CFO Safra Catz punted, saying, "We have great momentum going into the quarter."

Sailer said the strong showing by both companies may be more coincidence than bellwether for March quarter spending conditions. He sees Oracle benefiting from a rebound after a disappointing November quarter and anticipation of a seasonally strong May quarter, and Adobe enjoying pent-up demand for its next major product cycle.

The most positive development of the quarter was Oracle's unexpectedly strong showing on the applications side of the business. New-license revenue for application software grew by a very robust 57% to $423 million, well above analysts' expectations of about $368 million.

Oracle has spent more than $13 billion on a basket of applications vendors, including PeopleSoft, Retek, Siebel and, most recently, Hyperion (HYSL). Wall Street has been looking for signs that the huge expenditure is paying off. And it now appears to be doing so.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs