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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

If Your Head's in the Cloud, Buy Oracle

Stocks in this article: ORCL MSFT CRM RVBD FFIV

NEW YORK ( TheStreet) -- Every time I want to give Wall Street just a little bit of credit, something happens that presents indisputable evidence of just how it continues to get things wrong.

It continues to amaze me to see how often investors are easily swayed. They are quick to not only buy whatever hype Wall Street is commissioned to sell, but they are always the first to cry foul when it blows up in their faces. Often, the reason is because they opted to sacrifice value for the endless promises of growth.

There is no company today that fits this criteria better than database giant Oracle (ORCL - Get Report).

I say this because as enamored as investors have become with cloud computing companies, there is very little evidence to support the idea investors even understand exactly what it is they are excited about.

Amid all of the buzz surrounding "big data" and the likes of Salesforce.com (CRM - Get Report), EMC (EMC) Riverbed (RVBD) and F5 (FFIV), what often gets lost is an understanding of exactly how this collection of data will be used. In essence there is a gross discount of what is known as "analytics," a service that is unmatched to Oracle.

Though the company continues to take this disrespect in stride, on Monday it demonstrated just how appreciative its customers have been of its services by reporting fiscal fourth-quarter earnings that topped Wall Street's expectations.

The company announced net income of $3.5 billion or 69 cents per share for the period ending in May. This compares favorable to what it produced last year when its earned $3.2 billion and 62 cents per share.

Oracle beat on both the top and the bottom lines. Customers were clearly pleased with its products and services as its registered revenue of $10.9 billion -- a 1% increase from the previous year. Earnings arrived at $4.1 billion, or 82 cents per share on a non-GAAP basis, topping analysts' estimates of $10.89 billion and 78 cents per share, according to FactSet Research.

As impressive as these numbers were, even more remarkable is its revenue from software licenses surged by almost 40% to $3.98 billion.

1 of 2

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 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

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