Long-Term Tech Picks: Oracle, Reddit, and Netflix

TradingKey - When the market is expensive and the media is filled with negative and sensationalised headlines, it is easy for an investor to reconsider opening new positions in high-growth technology. 

The S&P 500 is trading at an estimated 31 times earnings, and the U.S.-China tariff war, disruption from Brexit and various geopolitical tensions can create a situation where the market has a correction in 12 months. 

However, if your strategic investment plan involves holding onto an investment for 10 years, market events in the near term will be less meaningful than having long-lasting competitive advantages and growing cash flow. 

Ignore the media and a very small investment of $5,000 into three technology companies: Oracle (ORCL), Reddit (RDDT) and Netflix (NFLX) could grow into significant amounts of money in 10 years.

Oracle’s Cloud-and-AI Flywheel

Oracle is the world's largest manufacturer and distributor of database software products; however, Oracle now exhibits regular tech growth. 

Oracle has converted its legacy business model from permanent software (on-premise) into permanent software plus cloud-based service(s) (SaaS) over the past ten (10) years while adding to Oracle’s product stack through additional enterprise resource planning (ERP) products and services. 

While also continuously upgrading (Oracle Cloud Infrastructure) service offerings to respond to increasing demand for remote storage capabilities, processing power (computing), and artificial intelligence workloads, the transformation placed Oracle in a very strong position because of the strong business application of artificial intelligence for any and all new demands.

Although Oracle has long been perceived as a small cloud infrastructure provider alongside Amazon (AMZN), Google (GOOGL), and Microsoft (MSFT), Oracle's positioning benefits each one of its customers who do not wish to be tied to any of these larger companies. 

As a result, Oracle can further leverage its advantages in the database (DB) marketplace to build additional AI advantages because these business applications already can collect, clean, and organize massive amounts of data that can subsequently be fed to create new artificial intelligence applications across the Oracle ecosystem. 

From fiscal year (FY) 2025, which concluded at the end of May, to FY 2028, Wall Street analysts project that Oracle will achieve over 30% revenue compounded growth and over 26% earnings per share (EPS) compounded growth on an annual basis. 

Reddit’s Data Advantage in Social, Search, and Ads

Unlike Meta (META), Reddit is not strictly social media. Instead, it has many classified boards and forums for local businesses and services.

Its user base comprises many different types of members; one member may post an article containing valuable content, which another member can read to learn about something new or useful before making a purchase. 

Third-party companies that use Reddit's data as a source of income pay for access to this information through licensing agreements.  By using third-party websites, such as OpenAI's ChatGPT and Google’s Gemini, Reddit companies also generate income by marketing their advertising based on the same data sources.

As Reddit continues its growth spurt, the level of engagement on the platform are accelerating. As of Q3 2025, there were approximately 116 million unique daily active users and about 50.2 million logged-in daily users (up from 101.7 million and 46.1 million, respectively, in Q3 2024). 

Some of Reddit's continued growth catalysts include elections, global conflicts, blockbuster movie releases, and meme-like stocks. Additionally, the traffic that is generated from ChatGPT, Gemini, and other bot-based services are helping to further fuel the positive growing trends associated with the site.

In addition, Reddit will be building user loyalty through its recently launched premium subscription service (Reddit Premium), which will offer ad-free browsing and other perks, among others.

Reddit has a current enterprise valuation of approximately $28.5 billion—a surprisingly attractive valuation for a company operating at the intersection of social media, news discovery and online search.

Netflix’s Scale, Content Engine, and AI Edge

With over 300 million members across 190+ countries, Netflix continues to be the top global provider of premium subscription video-on-demand content by creating significant amounts of unique programming tailored to local markets.

Netflix’s first-mover advantage has given it a significant cost advantage relative to its legacy media competitors, allowing Netflix to generate continued reliable cash flow from its operations while traditional media have reported billions in streaming losses during the same time period.

The difference between Netflix and many of its traditional media competitors will create continued significant opportunities for Netflix.

Artificial Intelligence is utilized extensively throughout the content development and delivery process at Netflix.

Netflix uses its customers’ viewing habits to help guide its decisions about new programs to give a green light to and how to market these new shows. 

This has helped Netflix identify some programs that have quickly become huge hits without huge franchise property support like Stranger Things (from the 1st season) or Squid Game or K-Pop Demon Hunters. 

Aside from the content strategy, Netflix is expanding its reach with its ad-supported, lower-cost tier by reducing the amount of password sharing and by selectively raising prices as a response to the rising content and infrastructure costs.

Why These Three Make Sense Now

Despite the uncertainty in the macroeconomic environment and the high valuation multiples at the index level, Oracle, Reddit, and Netflix each have durable growth profiles, supported by AI, data, and network effects. 

Moreover, Oracle's infrastructure and database layer monetizes the buildout of AI; Reddit generates both targeted advertising and high-quality training data for generative models that are created from real human conversations; and Netflix utilizes AI for making content production decisions and leverages its vast worldwide footprint to finance, distribute and monetize blockbuster films. 

The ten-year development trajectory of investing $5,000 in each company has an excellent chance of producing substantial returns, assuming that the investor can withstand the volatility that comes with investing in these three resilient businesses.