This Day On The Street
Continue to site
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

If Your Head's in the Cloud, Buy Oracle

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

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
SYM TRADE IT LAST %CHG
CRM $75.01 2.88%
MSFT $46.90 -1.10%
ORCL $43.93 -0.79%
AAPL $132.54 0.88%
FB $80.54 0.07%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs