The benchmark S&P 500 (SNPINDEX: ^GSPC) stock market index has delivered a gain of 67,036% (including dividends) since it was established in 1957. That translates to an average annual return of 10.2%, compounded.

That’s more than twice the return investors could earn if they held cash right now, even with interest rates at a 15-year high.

But, historically, investors who purchased specific individual stocks have far outperformed the return of the S&P 500. I’m going to share 10 stocks that have crushed the index since their initial public offering (IPO), and they have the potential to help you beat the market going forward, too.

Image source: Getty Images.

Meta Platforms: A Meteoric 826% return since IPO

Meta Platforms (NASDAQ: META) is the parent company of popular social networks Facebook, Instagram, and WhatsApp. Its stock came public in 2012, and it has since gained 826%, which translates to a compound annual return of 22.4%. That’s twice the long-run average of the S&P 500.

But it hasn’t always been smooth sailing. Meta stock fell 76% from peak to trough between 2021 and 2022 and then roared back to life with a 194% gain in 2023. In the third quarter of 2023 (ended Sept. 30), the company delivered a record amount of revenue, and its net income (profit) surged 163% year over year.

Meta stock is still cheap relative to the broader technology sector, and more market-beating returns might be ahead this year and beyond as the company ramps up its investments in the artificial intelligence (AI) space.

Palo Alto Networks: A Steep 1,920% return since IPO

The next market-beating stock is Palo Alto Networks (NASDAQ: PANW), a world-leading cybersecurity company that came public in 2012. Its stock has soared by 1,920% since then, or by a compound annual rate of 31.4%, and it spent much of 2023 making record highs.

Investors have rewarded the company’s growing investments in futuristic AI-powered cybersecurity, which are already attracting significant amounts of revenue. Palo Alto’s one-year-old Cortex XSIAM product is a security operations solution designed to reduce reliance on human-led, manual incident response with the help of AI. It has already amassed $1 billion in bookings, with one large organization using it to protect 300,000 computers and devices (endpoints).

Palo Alto is on track to deliver a record-high $8.2 billion in total revenue during the current fiscal year 2024 (ending July 31, 2024). Considering that the cost of cyberattacks continues to soar, investing in one of the largest cybersecurity providers in the world might be a great move for your money going forward.

Alphabet (Google): An Astounding 6,311% return since IPO

Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) is the parent company of Google, but it’s also home to other famous tech subsidiaries like YouTube and self-driving vehicle developer Waymo. Google stock came public in 2004 (it changed its name to Alphabet in 2015), and it has since delivered a return of 6,311%. That’s equivalent to a compound annual gain of 24.5%.

Advertising dollars generated from Google Search remain Alphabet’s single largest source of revenue, but a notable contribution also comes from its cloud computing platform, Google Cloud. It’s growing in importance because it’s where the conglomerate monetizes many of its AI initiatives, from new data center chips to large language models that form the foundation of AI software applications.

Like Meta, Alphabet stock also trades at an attractive valuation compared to its big-tech peers, and that could pave the way for more upside going forward.

Netflix: An Eye-Popping 44,146% return since IPO

Next up is streaming giant Netflix (NASDAQ: NFLX). It came public in 2002, shortly after the dot-com tech bubble burst, and its stock has delivered a red-hot gain of 44,146% since then. That translates to an annual return of 33.7%, compounded.

Netflix has disrupted everything from video rental stores to cable television. Its streaming service has become the largest in the world, with 247 million paying members, and the company continues to grow its addressable market by offering cheaper subscription tiers and by expanding into new territories.

Netflix is the only stand-alone streaming provider generating a profit, which bodes well for its long-term staying power compared to its peers, many of which are slashing costs right now. That could lead to more market share for Netflix over time and more gains for its stock.

The Unstoppable Rise of Technology Stocks Through the Ages

Apple’s Astronomical Growth

Apple shattered records by becoming the first $3 trillion company in the world, setting an unprecedented milestone in the history of the market. Since its initial public offering (IPO) in 1980, Apple has achieved an astronomical 181,080% return, with a compound annual return of 19%. The iPhone smartphone has unarguably become the company’s cornerstone, fostering the development of other billion-dollar hardware products like the Watch and AirPods. Additionally, Apple’s services segment, including Apple Music, Apple News, and Apple TV, has experienced exponential growth. The emergence of AI and the launch of the iPhone 15 Pro, equipped with an Apple-designed A17 Pro chip capable of processing AI workloads on-device, further reinforce the ever-expanding empire of Apple.

Amazon’s Soaring Trajectory

Amazon, a humble online bookseller at its inception in 1994, has since metamorphosed into one of the most diversified technology companies globally. Since its IPO in 1997, Amazon’s stock has skyrocketed by an astounding 193,553%, translating to a compound annual return of 33.8%. The bulk of Amazon’s profits stems from its cloud computing division, Amazon Web Services (AWS), which spearheads the company’s AI endeavors. The e-commerce behemoth has also made significant inroads with its streaming service, Prime, and its burgeoning digital advertising business. Amazon’s stock continues to offer investors a golden ticket to the digital economy at an incredibly attractive valuation.

Nvidia’s Meteoric Ascent

Nvidia, the standout performer of 2023, achieved a colossal gain of 196,288% since its IPO in 1999, marking a staggering 37.2% annual return compounded. The company’s extraordinary growth is underpinned by the stratospheric demand for its AI data center chips, particularly the H100 and the upcoming H200. Riding high on a slew of groundbreaking accomplishments, Nvidia reported a record data center revenue surge and a forecast for a monumental increase in total revenue. With a dominant market share in the data center chip arena, Nvidia remains a formidable force to reckon with, promising an abundance of untapped growth potential.

Oracle’s Steady Ascent

Since executing its IPO in 1986, Oracle has recorded a remarkable 221,826% return, equivalent to a compound annual return of 23.1%. The company’s evolution from database management software to a leading provider of cloud-based applications has fueled its growth. Oracle’s strategic foray into AI is evidenced by its collaboration with leading AI start-ups and an aggressive expansion plan for new data centers. Oracle is ripe for investors eyeing an opportunity to ride the impending wave of growth in the coming years.

Microsoft’s Monumental Performance

Microsoft, the perennial rival of Apple, boasts a market cap of $2.7 trillion, closely trailing behind Apple in the race for the world’s most valuable company. Since its IPO in 1986, Microsoft’s stock has surged by an astounding 504,247%, translating to a compound annual return of 25.9%. Despite its roots in flagship software products like the Windows operating system and Word, Microsoft has amplified its presence in hardware, cloud computing, and AI. The company’s rapidly expanding footprint across various tech domains positions it as a formidable player in the fast-evolving landscape of technology stocks.

The Untold Legacy: Stocks that Defied the Odds