If You Invested $1000 in Oracle 10 Years Ago, This Is How Much You'd Have Now
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.
FOMO, or the fear of missing out, also plays a role in investing, particularly with 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.
Redwood City, CA-based Oracle Corporation was founded in 1977 and incorporated later in 2005. Oracle 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.
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 $42.4 billion in fiscal 2022. 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 $30.2 billion in fiscal 2022. Total cloud license and on-premise license came in at $5.9 billion in fiscal 2022.
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
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Oracle, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in April 2013 would be worth $2,904.37, or a gain of 190.44%, as of April 5, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 162.86% and the price of gold increased 23.02% over the same time frame in comparison.
Analysts are anticipating more upside for ORCL.
Oracle is benefiting from the ongoing momentum across its cloud business, driven by the strong uptake of Oracle Cloud Infrastructure services and Autonomous Database offerings. Solid adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP), Fusion ERP and Fusion Human Capital Management (HCM), bodes well. Solid demand for the Oracle Dedicated Region Cloud@Customer is anticipated to drive the top line. Partnerships with Accenture and Microsoft is helping Oracle win new clientele. The company’s share buybacks and dividend policy are noteworthy. However, higher spending on product enhancements, especially toward the cloud platform, amid increasing competition in the cloud domain is likely to limit margin expansion. We expect fiscal 2023 non-GAAP operating expenses to jump 14.1% over fiscal 2022.
The stock is up 6.38% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 13 higher, for fiscal 2023. The consensus estimate has moved up as well.
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Oracle Corporation (ORCL) : Free Stock Analysis Report
