History Says the S&P 500 Will Surge in 2025. 2 Top Stocks to Buy Before It Does.

Oracle differentiates itself from many other cloud infrastructure players with its unique cloud architecture. The company opted for a modular design approach, where only six standardized data racks are needed to create a cloud region that provides all services to customers. The company can easily scale its data center infrastructure on demand, from 50 kilowatts to 1.6 gigawatts, cheaply and efficiently. Standardization across racks and services has also helped Oracle effectively deploy automation tools across cloud infrastructure.

Oracle has also established a large geographic footprint with 98 cloud regions. Company signs multi-cloud agreements Microsoftazure, AlphabetGoogle Cloud and AmazonAWS provides customers with high flexibility in deploying their systems in the cloud.

Admittedly, Oracle doesn’t seem like the most popular stock on Wall Street. However, the company was recently trading at just 8.43 times trailing 12 months. sales –better than the software industry’s average price-to-sales (P/S) ratio of 10.4. Oracle could see significant share price gains in the coming months as shares expand in line with strong growth.

The second database expert worth investing in MongoDB (NASDAQ:MDB). Although the company easily managed to beat consensus revenue and earnings estimates in the third quarter of fiscal 2025, shares have long tumbled on the unexpected news. CFO and Operations Director Michael Gordon leaves at the end of January 2025. The ensuing price correction presented an excellent entry opportunity for retail investors.

MongoDB added nearly 1,900 new customers sequentially and finished the third quarter (ended October 31) with a total customer count of over 52,600. Additionally, the company served 2,314 high-value customers (with annual recurring revenue of at least $100,000) in the third quarter; This number increased compared to 1,972 customers in the same quarter of the previous year.

Atlas, a cloud-native and integrated suite of database tools and services, accounts for approximately 68% of MongoDB’s total revenue. The cloud platform’s revenue grew 26% year over year in the third quarter, driven by strong adoption by organizations to run mission-critical projects. Atlas served more than 51,100 customers at the end of the third quarter; In the same quarter of the previous year, this figure was 44,900.

MongoDB is focusing on reallocating some of its go-to-market resources from mid-market to large enterprise channels. Reallocating funds from the mid-market segment to the enterprise channel is expected to reduce the growth rate of direct selling customers in the short term, but is expected to deliver higher revenue growth in the long term.

MongoDB uses AI tools and professional services to modernize customers’ legacy applications. Since many of these applications rely on relational databases, the company also uses a relational migration tool (suitable for documents and other complex data structures) to migrate them to the MongoDB platform. This modernization reduces cost, time, and risk of data loss or corruption. Therefore, MongoDB sees solid long-term growth opportunity in the legacy application modernization market.

Finally, MongoDB is also poised to benefit organizations increasingly focused on AI-powered applications that often require querying complex and rich data sets. The company says its unified platform approach (combining source data, metadata, operational data, and vector data) is superior to using multiple complex databases.

Considering several growth tailwinds and its strong financials, MongoDB looks like an attractive buy right now.

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John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a board member of The Motley Fool. Suzanne Frey, an executive at Alphabet, is a board member of The Motley Fool. Randi Zuckerberg, former market development director and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a board member of The Motley Fool. Manali Pradhan It has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, MongoDB, Nvidia and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a feature disclosure policy.

History Says S&P 500 Will Rise in 2025. 2 Best Stocks to Buy Before They Rise. originally published by The Motley Fool