Quick look:
- Latest study reveals: What if tech giants’ employees had invested 10% of their salaries in their own company stocks from 2014 to 2024? The potential profits surpass 1.3M.
- Oracle leads with a $12K potential investment worth over $1.3M today thanks to the company’s stock price rising nearly 270% over the last 10 years.
- Netflix has the second highest stock price in 2024, rising from $48.80 to $679.70, which makes it the second highest after Oracle.
A study has revealed the potential profits for employees of major tech companies if they invested 5-25% of their salaries in company stocks from 2014 to 2024.
The Stock Dork recently conducted the study in which the calculations were made by using data from sources like Business Insider and Macrotrends, possible earnings by calculating the annual number of affordable shares and multiplying by the 2024 closing stock prices.
The findings rank the companies from highest to lowest potential employee earnings considering an average investment rate of 10%.
Oracle leads with a $12K potential investment worth over $1.3M today. This result is primarily driven by the company’s stock price rising nearly 270% over the last 10 years making a $12K investment worth 107 times as much today.
Oracle has the highest price jump of the stock prices in the list, even doubling the price compared to last year.
Tesla takes second place with a $12K investment now worth around $1.07M. Its rise from $14.83 to $242.70 per share turned the initial amount into 72 times its value. While Tesla’s stock growth wasn’t as high as Oracle’s it still significantly increased the investment’s worth. Tesla employees also saw a moderate salary increase influencing the overall investment gains.
Apple secures the third spot, transforming a $16.5K initial investment into $800K today. This high increase is largely due to Apple’s stock price jump from $24.67 to $220.33, reflecting its significant impact on the market.
Additionally, the increase in average employee salaries from $120K to $150K boosts their potential earnings.
Nvidia is in the fourth position with a $12K investment now valued at $671K. This growth is attributed to the rise in Nvidia’s stock price from $4.82 to $122.14, showcasing the company’s consistent growth and investment returns.
Nvidia recently underwent a 10-for-1 share split, multiplying the number of shares held by employees by 10.
At its peak stock price of $822 in February 2024, employees could have earned over $4M. However, the stock price has since dropped nearly 6.5 times.
Amazon is ranked fifth with potential employee earnings of $634K from a $16.4K investment. This is due to the stock’s climb from $15.48 to $198.26, coupled with an increase in salaries from $164,490 to $169,458.
Microsoft sits at the sixth place with a $11.5K investment in 2014 growing to $570K driven by the stock’s increase from $40.25 to $459.13. The analysis also accounts for the consistent salary increases from $115K.
Netflix, ranking seventh, displays potential employee earnings of $451K from $10.5K investment thanks to a substantial rise in stock price from $48.80 to $679.70, the second highest stock price in the list today after Oracle. This is further supported by salary growth from $105K to $145K.
Alphabet (Google) in the eighth position presents potential earnings of $319K from an initial $12,8K invested in 2014. The growth follows the stock price’s rise from $26.53 to $138.08 and a moderate salary increase from $128K to $133K.
Adobe occupies the ninth spot with potential earnings of $362K from $11K investment in 2014, attributed to the stock’s jump from $72.70 to $570.93. The salary increase from $110,000 to $125,912 would help build up shares.
Meta, formerly known as Facebook, completes the top ten with potential earnings of $326K from $7,7K investment.
The stock’s increase from $77.94 to $502.30, combined with a salary hike from $77K to $140K would make investment in the company’s stocks a profitable decision.
Here are the results summed up:
[Featured Image Credit]