Editor's note: This is part 11 of a 13-part series about companies whose shares have amassed 100,000% returns for investors and the path taken to generate such impressive gains over the long term. See below for links to the other stocks in this series.
Oracle (ORCL) is a leader in cutting-edge relational database technology, and the company's commitment to continuous innovation and investment in technology is what has made it a leader.
The original name of the company, which was founded in 1977, was Software Development Laboratories – an homage to its roots in the rigors of computer science.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The company released its first product in 1979 and its first two customers were the Air Force and the CIA, which provide testimony to the revolutionary nature of relational databases.
They were never offered before and they enabled the creation of links between data sets that allowed users to gain unprecedented insights from unprecedented amounts of data.
Since relational databases were focused on managing large datasets, their customer base was self-selecting: The largest companies in the world used Oracle software.
A phone company could gain insights from data for billions of calls. An airline could manage hundreds of millions of reservations and a manufacturing company could keep tabs on the production data on, say, a million units of finished product.
The value and utility of relational databases drove Oracle sales. But there was another factor at work. The relentless drive of Oracle's mercurial co-founder Larry Ellison.
Ellison is a gifted innovator and leader but also hyper-competitive and many of the company's aggressive sales tactics stemmed directly from this drive.
These included threatening licensing audits, bundling products into groups that exceeded customers' needs, renewal efforts that threatened longer-term contracts if early offers were not accepted, and, of course, a young aggressive sales force led by managers who frequently got calls from Ellison himself.
While some of these tactics were questionable, they did their job in one respect: they drove sales at Oracle.
But Ellison's vision paid off as well. He understood early on the importance of cloud computing, and as early as 2012, shifted the company's focus away from so-called on-premise computing to a software-as-a-service (SaaS) model.
While cloud computing has not killed off on-premise computing, it has relegated it to a smaller sector of the market, and Oracle dominates cloud-based enterprise-wide solutions. Further, it killed many on-premise software companies that did not embrace cloud computing quickly enough.
And Ellison's vision paid off again with AI. His embrace of the technology as early as 2020 by reconfiguring Oracle products means that today, its Gen2 Cloud solution is the leading infrastructure for managing generative AI workloads.
Oracle's investments in technology, commitment to innovation as technology shifts and its relentless marketing machine have shown up on the company's top and bottom line.
Since 2005, revenues have grown from $11.7 billion to $49.9 billion for the year ended 2023.
Should AI technology live up to its billing, Oracle could have another significant leg up in its growth. Even if the AI market is slower to develop than anticipated, Oracle is well-positioned to be present if and when it takes off.
Note: This content first appeared in Louis Navellier's latest book, The Sacred Truths of Investing: Finding Growth Stocks that Will Make You Rich, which was published by John Wiley & Sons, Inc.
Other 100,000% return stocks
- McDonald's Stock: How Small Changes Have Led to 100,000% Returns
- How Amazon Stock Became a Member of the 100,000% Return Club
- M&A Is Why UnitedHealth Group Stock Is a Member of the 100,000% Return Club
- Sherwin-Williams Is a Sleeper of the 100,000% Return Club
- Dealmaking Drives HEICO Stock's 100,000% Return
- Adobe Stock's Path to a 100,000% Return Is Impressive
- Apple's 100,000% Return Is a Result of Innovation, Brand Loyalty and Buybacks
- Home Depot's Winning Ways Fueled Its 100,000% Return
- It's No Surprise That Berkshire Hathaway's in the 100,000% Return Club
- Nvidia Stock's Been Growing for Years. Just Look At Its 100,000% Return
-
US-China Trade Hopes Send Stocks to New Highs: Stock Market TodayApple and Microsoft are on track to join Nvidia in the $4 trillion market cap club.
-
A Lesson From the School of Rock About the MarketsIt's hard to hold your nerve during a downturn, but next time the markets take a tumble, remember this quick rock 'n' roll tutorial and aim to stay invested.
-
US-China Trade Hopes Send Stocks to New Highs: Stock Market Today
Apple and Microsoft are on track to join Nvidia in the $4 trillion market cap club.
-
A Lesson From the School of Rock (and a Financial Adviser) as the Markets Go Around and Around
It's hard to hold your nerve during a downturn, but next time the markets take a tumble, remember this quick rock 'n' roll tutorial and aim to stay invested.
-
I'm a Financial Pro: This Is How You Can Guide Your Heirs Through the Great Wealth TransferFocus on creating a clear estate plan, communicating your wishes early to avoid family conflict, leaving an ethical will with your values and wisdom and preparing them practically and emotionally.
-
To Reap the Full Benefits of Tax-Loss Harvesting, Consider This Investment Strategist's StepsTax-loss harvesting can offer more advantages for investors than tax relief. Over the long term, it can potentially help you maintain a robust portfolio and build wealth.
-
Social Security Wisdom From a Financial Adviser Receiving Benefits HimselfYou don't know what you don't know, and with Social Security, that can be a costly problem for retirees — one that can last a lifetime.
-
Take It From a Tax Expert: The True Measure of Your Retirement Readiness Isn't the Size of Your Nest EggA sizable nest egg is a good start, but your plan should include two to five years of basic expenses in conservative, liquid accounts as a buffer against market volatility, inflation and taxes.
-
Dow Adds 472 Points After September CPI: Stock Market TodayIBM and Advanced Micro Devices created tailwinds for the main indexes after scoring a major quantum-computing win.
-
October Fed Meeting: Live Updates and CommentaryThe October Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
