Holding a stock in your portfolio that continues to rise is probably the best feeling to experience. Stock gainers are stocks that have experienced a rapid price increase of a considerable percentage over the years. In 2004, a little-known search engine company went public with its shares priced at around 85 USD. Nearly two decades later, these shares trade at astonishingly higher prices. Stock gainers can make investors millionaires and by knowing the most famous cases, beginner investors can gain valuable insights to detect such stocks in their early developments. Let’s explain the most extraordinary stock gains of all time and examine factors that fueled their otherworldly success.
Historical Context
The biggest stock gainers of all time were influenced by a complex list of factors, including economic indicators, company performance, excellent management, innovations, and the sentiment of investors. These dynamics form a foundation on which the stock market operates, driving the important fluctuations that can lead to significant gains. Each decade can be characterized by its dominant trend that influences stocks within one sector more than in others. In the early 20th century, industrial growth was the main drive for market surges, whereas the late 20th and early 21st centuries were more technology-driven times. Companies operating in these important sectors had the highest chances of achieving significant growth and making their investors millionaires.
Biggest Stock Gainers — Top 5
Nvidia Corporation
Nvidia is a technology company known for its graphics processing units (GPUs) for gaming and professional markets. It also produces systems on chip units (SOCs) for the mobile computing and automotive market. The main fuel that has driven Nvidia’s rise to 3 trillion dollars in market capitalization was the first Ethereum mining, where miners were buying all the available Video Cards. Later, the Artificial Intelligence gold rush, where GPUs are widely used to train neural networks. Nvidia’s stock saw rapid growth in the mid-2010s, accelerating further due to the boom in gaming, mining, data centers, and AI technologies. Nvidia’s valuation soared as it became critical to AI technology, with its stock reaching an all-time high in 2021.
Apple Inc.
Apple designs, manufactures, and markets consumer electronics and computer software with online services. The most popular products from Apple include iPhone, iPad, and MacBook. The company has started to produce powerful CPUs such as the M series for laptops and A bionic series for mobile devices, constantly outperforming its competitors.
All these developments propelled Apple to become the most valuable company, reaching 1 trillion market cap in 2018 and 2 trillion in 2020. A strong product ecosystem, high brand loyalty, and innovations in technology are the main drivers in Apple’s revenue and stock price.
Amazon.com, Inc.
Amazon is a global e-commerce and cloud computing giant interested in artificial intelligence, digital streaming, and logistics. The company’s stock has shown consistent growth over the decades since the early 2000s. The company performed very well post-2010 due to its dominance in e-commerce and the rapid expansion of its AWS services. The COVID-19 pandemic only solidified Amazon’s place as e-commerce and cloud services saw increased demand.
Tesla, Inc.
Tesla is a well-known automotive and energy company known for its electric vehicles, battery energy storage solutions for cars and homes, solar products, and related services. Tesla’s stock began rising notably in the mid-2010s and transitioned into a significant acceleration in 2019. It was included in S&P 500 in December 2020 boosting investor confidence further. In November 2021, Tesla reached its peak market cap of 1 trillion dollars.
Netflix, Inc.
While the smallest in this list, Netflix can not be underestimated. It is an entertainment company that offers streaming services and television programs with a library of movies, including those produced by the company itself.
Netflix stock saw a dramatic price increase when the company expanded globally and shifted from DVD rental to streaming from 2007 onwards. The stock price achieved its peak during COVID-19 as a result of increased demand for streaming services during massive lockdowns in the world.
Analysis of Common Factors
All the companies in this list were innovative during their beginnings and used advanced technologies to quickly expand their markets. Tesla revolutionized the automotive industry with eclectic vehicles and sustainable energy solutions. Amazon pioneered e-commerce at scale and transformed cloud computing with AWS. Apple continued innovating consumer electronics and disrupted mobile devices markets with the iPhone, iPad, and related services. Nvidia developed cutting-edge GPU technology essential for gaming, mining, and AI, and Netflix redefined entertainment consumption by transitioning from DVD rental services to a streaming service model.
Lessons for Investors
The most important lesson for investors who are seeking to buy the next big stock is to ensure their preferred company is innovative, has visionary leadership, and is relevant to current market trends. Investors should also diversify their portfolio by investing not only in tech-heavy stocks such as APPLE or Nvidia but also in other sectors to mitigate risks and increase their chances of catching big gainers. Companies that can adapt to changing market dynamics guided by strong leadership can be a good investment opportunity. Timing can also play a role in detecting and investing early before the price reaches its peak.
