Here's How Much a $1000 Investment in Oracle Made 10 Years Ago Would Be Worth Today

For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in Oracle (ORCL) ten years ago? It may not have been easy to hold on to ORCL for all that time, but if you did, how much would your investment be worth today?

Oracle's Business In-Depth

With that in mind, let's take a look at Oracle's main business drivers.

Oracle Corporation is one of the largest enterprise-grade database, middleware, and application software providers.

Oracle has expanded its cloud computing operations over the last couple of years. The company offers cloud solutions and services that can be used to build and manage various cloud deployment models.

Built upon open industry standards such as SQL, Java and HTML5, Oracle Cloud provides access to application services, platform services and infrastructure services for a subscription. Through its Oracle Enterprise Manager offering, the company manages cloud environments.

Redwood City, CA-based Oracle's software and hardware products and services include Oracle Database, Oracle Fusion Middleware, Java and Oracle Engineered Systems. Oracle Engineered Systems include Exadata Database Machine, Exalogic Elastic Cloud, Exalytics In-Memory Machine, SPARC SuperCluster, Virtual Compute Alliance, Oracle Database Appliance, Oracle Big Data Appliance and ZFS Storage.

With the acquisition of Sun Microsystems in Jan 2010, Oracle began selling hardware products and services, primarily comprising computer server and storage products.

Oracle reported revenues of $50 billion in fiscal 2023. The company reports its new software licenses under its new Cloud license and on-premise license segment. Further, the company merged its Cloud SaaS, Cloud PaaS and IaaS along with its software license updates and product support into Cloud services and license support.

Total Cloud services and license support revenues came in at $35.31 billion in fiscal 2023. Total cloud license and on-premise license came in at $5.78 billion in fiscal 2023.

Oracle faces significant competition in most of its operational markets (database, applications, storage, cloud computing) from the likes of Dell, IBM, Hewlett-Packard, Microsoft, SAP, salesforce.com, Workday and Teradata.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Oracle a decade ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in March 2014 would be worth $3,338.56, or a gain of 233.86%, as of March 15, 2024, according to our calculations. This return excludes dividends but includes price appreciation.

The S&P 500 rose 179.75% and the price of gold increased 50.53% over the same time frame in comparison.

Going forward, analysts are expecting more upside for ORCL.

Oracle’s third-quarter fiscal 2023 results benefited from the steady adoption of strategic cloud applications, autonomous database and OCI, as well as a recovery in cloud revenue growth. Its Gen 2 Cloud is driving artificial intelligence (AI) clientele because of better performance at a lower cost due to high bandwidth and low-latency RDMA networks. ORCL’s continued investment in cloud infrastructure positions it well for sustained growth in the dynamic software industry. Its share buybacks and dividend policy are noteworthy. Oracle shares have outperformed the industry in the year-to-date period. However, the uncertain economy and competition in the cloud computing market weighed on demand for its cloud offerings. Stiff competition in the cloud market is slowing down the growth of its expansion efforts in the competitive market.

The stock has jumped 11.31% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 10 higher, for fiscal 2024; the consensus estimate has moved up as well.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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