I think this is an area that should generate some excitement for investors. But I caution that we not bet the company's entire future on it -- particularly since the company didn't go into much detail about it during the announcement.
It's like pulling teeth to get Wall Street analysts to say something indiscriminately positive about Oracle and its prospects. This is even though these same analysts have bumped up their average estimates for the fiscal year from $2.55 per share 60 days ago to $2.56. The Street has grown more enamored with Salesforce.com, EMC and even suggesting that Red Hat (RHT - Get Report) might be a better investment option due to Oracle's perceived lack of growth.
But the numbers tell another story. In fact, I argue that Oracle's true value is far from being reflected in today's prices. Patient investors should be rewarded with a stock that is trading at $40 in the next six to 12 months.