Despite its smaller cloud market share, Oracle has important advantages compared to Amazon, Microsoft and Alphabet.
Netflix is at the top of its game, but its valuation is extended.
Nvidia’s latest quarterly results show why the title remains a long -term convincing purchase.
10 actions that we love better than Oracle ›
The 10 largest American growth companies now represent 38% S&P 500. Known as “Ten Titans”, the list includes Nvidia (Nasdaq: NVDA),, Microsoft,, Apple,, Amazon,, Alphabet,, Meta-platforms,, Broadcom,, Tesla,, Oracle (NYSE: Orcl)And Netflix (Nasdaq: nflx).
Oracle, Netflix and Nvidia have been the best interpreters of Titans to date. Let us determine if these growth actions have what it takes to continue to outperform next year.
Image source: Getty Images.
Oracle was the star among the titans. With a total return at the start of the year of more than 40%, it exceeded its market capitalization of more than $ 660 billion.
ORCL TOTAL RETURN OF YCHARTS data.
Oracle was close to the money died in the five years between 2015 and the end of 2019 – winning only 17.8% against 56.9% for the S&P 500. But since the beginning of 2020, Oracle has increased by 345% compared to a gain of 100.6% in the S&P 500. A large OIC engine is the construction and adoption of Oracle Cloud Infrastructure (OIC).
Oracle has transformed a database company first into a full -fledged ecosystem. Not long ago, companies used Oracle database software on third -party clouds. Oracle has decided to capture this income by creating its own cloud services.
Oracle Integration Cloud hosts software offers as a service for financial reports, automated workflows, human resources, marketing, personalization, etc. Oracle also offers artificial intelligence database services (AI). And OCI has proven to be much more profitable for high -intensity operations than Amazon, Microsoft Azure or Google Cloud web services. It is a particularly ideal offer for sectors such as financial services and health care that have complex regulatory executives and sensitive information. On its profits, Oracle often explains how industries choose OIC for its safety and compliance capacities.
Oracle was already a leader in business software solutions. And now he is a major player in the cloud sector. The main drawback of Oracle is that its valuation is expensive and that it passes in an extremely aggressive way. Oracle is undoubtedly among the Titans with higher risk reward and with higher potential. If its investments result in the growth of profits in the end, it could continue to be one of the best interpreters in the group. Otherwise, it would not be surprising that the action undergoes a large sale.
The disproportionate yields of Netflix in recent years are partly due to the way in which the stock is beaten in 2023. Netflix fell by more than 50% in 2022, exceeding larger sale in the Nasdaq Composite(Nasdaqindex: ^ xicic) This year. At the time, other streaming platforms were gaining ground and Netflix was still incoherent.
The business model has been largely unchanged in the past decade. It is therefore not a transformational story like Oracle. Netflix has rather perfected his job.
The biggest change has been his content slate – what he spends, how he markets this content (such as the world success of “Kpop Demon Hunters”) and, fundamentally, increasing its overall content success rate. The second major change was to repress password sharing. It was a resounding success because many new accounts opened – showing that customers were ready to pay for Netflix because they appreciate the service (once again, despite a lot of competition). And finally, the level funded by Netflix advertising stimulates new registrations, which accelerates income growth.
Netflix is a advanced milk cow with high margins. It has become an almost perfect business. The only problem is that the evaluation reflects that because Netflix is negotiated at 52 times the end of the 12 -month income. Netflix could still be a long -term winning stock, but it may need a year or two to develop in its evaluation. Consequently, it may not be an interpreter off competition in 2026.
NVIDIA said the exceptional results of the second quarter of 2026 on August 27 were hampered by the Chinese activities of the company by export to China.
Even with difficult compositions in the second quarter of 2025, NVIDIA increased revenues by 56% and adjusted profit per share by 54%. We can say that the most impressive aspect of Nvidia’s results is that it continues to maintain ultra-high margins greater than 70%. The high margins of Nvidia allow him to convert a substantial quantity of sales to profit, which testifies to his advantage over competition and technological leadership on the world scene.
Nvidia draws a lot of attention to its data center activity – and rightly so, because it represented 88% of income in the last quarter. But it should be noted that the rest of the business is doing well too. The income from the Nvidia non -Données, which includes professional visualization, the automobile and the games of games and PC AI, have collectively $ 5.49 billion – up 48% against 3.7 billion dollars a year ago.
Nvidia is in his third year of what was an uninterrupted masterclass of exponential growth on a scale, unlike any business that the world has ever seen. And in one way or another, the company always has the foot on the gas without any sign of slowdown.
NVIDIA’s prospects for the 2026 third quarter fiscal year provide $ 54 billion in income, even if he ships H20 zero fleas in China – while maintaining a gross margin of 73%. This would mark a 54% increase in revenues and just a slight drop in raw margins that the year 2025 in the third quarter and an increase of almost three times in just two years.
Despite the impeccable results, NVIDIA’s assessment is not cheap, as investors tariff a sustained frantic growth rate. But Nvidia continues to deliver, therefore its price / benefit ratio of 58.4 is reasonable.
If Nvidia’s action was unchanged for a year but the company increased by 50%, the P / E would drop to 38.9. So, even now, with the stock on the right track to crush the S&P 500 for the third consecutive year, Nvidia remains a better stock of AI to buy now.
I expect Nvidia to continue to direct the ten titans higher in 2026, especially if commercial policy with China is lightened. However, if for any reason, there is a slowdown in NVIDIA key customers’ AI expenses, NVIDIA could lead to the ten titans and the wider market with.
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Daniel Foelber has positions in Nvidia. The Motley Fool has positions and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Netflix, Nvidia, Oracle and Tesla. The Motley Fool recommends Broadcom and recommends the following options: Long January 2026 395 $ calls Microsoft and short January 2026 405 $ calls Microsoft. The Motley Fool has a policy of disclosure.
Will the 3 high-performance actions of the 2025 lead the group again in 2026? was initially published by the Motley Fool
