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Billionaire’s Fortune Shrinks Amid Stock Volatility
Oracle co-founder Larry Ellison has reportedly seen approximately $24.1 billion erased from his net worth following a recent decline in the company’s stock price, according to financial analysis. The drop represents about a 6.3% decrease in Ellison’s wealth, though net worth calculations indicate he remains the world’s second-wealthiest person with an estimated fortune of $350.6 billion.
Sources indicate the stock slide could be attributed to Oracle executives failing to provide additional details about capital expenditure plans during recent communications. Jefferies analyst Brent Thill noted in his Thursday analysis that there was “no forward-looking commentary” on expenditures and that estimates would need to “ramp” in line with Oracle’s cloud infrastructure revenue growth.
Analysts Maintain Bullish Outlook Despite Concerns
Despite pointing to a lack of answers on Oracle’s capital expenditure strategy, Thill reportedly raised his price target for Oracle’s stock to $400 from earlier estimates of $360. Other analysts followed similar patterns, with DiFucci and Lenschow similarly raising their price targets to $400 from $375 and $367 respectively.
According to the analysis, these upward revisions suggest maintained confidence in Oracle’s long-term prospects despite short-term volatility. Stifel analyst Brad Reback reportedly held his $350 price target, indicating varying perspectives on the company’s valuation amid broader market trends affecting multiple sectors.
Cloud Computing Growth Remains Central Narrative
Oracle’s stock has accelerated in recent months as the cloud computing giant has forecast significant revenue growth driven by artificial intelligence demand. The company reportedly projected cloud infrastructure revenue to increase to $18 billion this fiscal year before nearly doubling to $32 billion in 2027.
Analysts suggest even more dramatic growth is anticipated in subsequent years, with projections reportedly reaching $73 billion, $114 billion and $144 billion over the following three years. These forecasts come as related innovations in artificial intelligence continue to transform technology sectors globally.
Unprecedented Contract Revenue Signals Market Shift
The report states Oracle disclosed a 359% increase in contracted revenue that has yet to be recognized, reaching $455 billion. This surge reportedly followed Oracle securing four multibillion-dollar contracts with three different customers through its latest quarter.
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Deutsche Bank’s Brad Zelnick wrote that those on a call with Oracle executives at the time were “all kind of in a shock in a very, very good way,” noting there was “no better evidence of a seismic shift happening in computing.” The development highlights how industry developments are creating new opportunities across sectors.
Wealth Rankings Reflect Tech Sector Volatility
Ellison, who holds approximately 41% equity in Oracle Corporation, reportedly came within reach of Elon Musk’s top position last month after Oracle shares experienced their largest single-day gain since 1992. That surge added approximately $110 billion to Ellison’s net worth in one day, making him only the second person to ever eclipse the $400 billion mark.
Musk’s fortune has since swelled toward the $500 billion threshold once again, settling at $485.9 billion as of Friday, maintaining his position as the world’s wealthiest person. The fluctuation in billionaire rankings coincides with broader recent technology sector movements and market trends affecting global industries.
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