Oracle Corporation (NYSE:ORCL) has performed better than fellow tech veteran Microsoft Corporation (NASDAQ:MSFT) in terms of stock performance after nearly three decades of being public companies, Dominic Chu reports in a throwback Thursday segment on CNBC.
Oracle Corporation (NYSE:ORCL) was being compared to Microsoft Corporation (NASDAQ:MSFT) as the later marks its 40th anniversary and because the two conducted their initial public offerings just a day apart on March 12 and March 13, 1986 respectively.
According to Chu, he can’t almost believe that Microsoft Corporation (NASDAQ:MSFT) is 40 years old. He says that he is 38 and the fact that the company founded by Bill Gates and Paul Allen in 1975 has been around longer than he has been alive.
Oracle Corporation (NYSE:ORCL), on the other hand, turns out to be as old as Chu. The firm was founded by Larry Ellison, Bob Miner and Ed Oates in 1977.
According to Chu, Microsoft Corporation (NASDAQ:MSFT) gained “a very healthy [and] respectable” 33% on the day of its IPO. However, Oracle Corporation (NYSE:ORCL) gained 37% on the first day its stock was traded at the New York Stock Exchange.
“You kind of fast forward to what’s happening since 1986 and you can see some huge moves. […] Microsoft shares have gained 64,000% just since 1986 when it went public. Meanwhile, Oracle has done even better. It’s up about 92,600% during that time,” Chu says.
The CNBC reporter says that to give people some perspective, the split-adjusted basis for Microsoft shares at the moment is around $0.07 to $0.08. It’s just pennies in terms of the cost of its share at its IPO, Chu says. The Windows maker has split nine times since 1986, he adds.
Jean-Marie Eveillard’s First Eagle Investment Management owned about 34 million Oracle Corporation (NYSE:ORCL) by the end of 2014. First Eagle Investment Management also ended 2014 with about 36.23 million Microsoft Corporation (NASDAQ:MSFT) shares. Another Microsoft shareholder is Boykin Curry’s Eagle Capital Management which owned about 32.13 million shares of the firm by the end of the last quarter of 2014.
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