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If You Invested $1000 in Oracle a Decade Ago, This is How Much It'd Be Worth Now

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Oracle (ORCL - Free Report) 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 $53 billion in fiscal 2024. 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 $39.4 billion in fiscal 2024. Total cloud license and on-premise license came in at $5.1 billion in fiscal 2024.

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 requires research, patience, and a little bit of risk. So, if you had invested in Oracle ten years ago, you're likely feeling pretty good about your investment today.

A $1000 investment made in September 2014 would be worth $3,402.12, or a gain of 240.21%, as of September 2, 2024, according to our calculations. This return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 181.94% and the price of gold went up 86.52% over the same time frame.

Going forward, analysts are expecting more upside for ORCL.

Oracle is gaining from the ongoing momentum across its cloud business, driven by the strong uptake of Oracle Cloud Infrastructure and Autonomous Database offerings. The solid adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP) and Fusion ERP, bodes well. Oracle’s Gen 2 Cloud is delivering 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. We expect fiscal 2025 net sales to grow 7.5% from fiscal 2024. However, higher spending on product enhancements, especially toward the cloud platform amid increasing competition in the cloud domain is expected to limit margin expansion.

Over the past four weeks, shares have rallied 6.01%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

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