Larry Ellison Loses $24 Billion As Oracle Shares Slide

Core Insights - Oracle's stock experienced a significant decline of approximately 7%, resulting in a loss of about $24 billion from Larry Ellison's net worth, despite positive revenue growth forecasts from executives [1][4] Financial Forecasts - Oracle executives, including Larry Ellison and CEO Clay Magouyrk, projected an average annual revenue growth of 31% over the next five years, with sales expected to reach $225 billion by fiscal year 2030 [2] - Earnings per share are anticipated to increase to $21 by fiscal year 2030, reflecting an average annual growth of 28% [2] Analyst Reactions - Analysts reacted positively to Oracle's forecasts, with Barclays' Raimo Lenschow noting that the estimates exceeded Wall Street's expectations, while Guggenheim's John DiFucci described the growth estimates as significantly higher than speculated [3] - Jefferies analyst Brent Thill attributed the stock decline to a lack of details regarding capital expenditure plans, indicating that further commentary on expenditures was necessary to align with revenue growth [3] Valuation Impact - Following the stock decline, Larry Ellison's net worth decreased by 6.3% to an estimated $350.6 billion, placing him second to Elon Musk, whose net worth is approximately $485.9 billion [4] - Ellison's fortune had previously surged by $110 billion in a single day due to a record increase in Oracle shares [4] Price Target Adjustments - Despite concerns over capital expenditures, analysts raised their price targets for Oracle's stock to $400, with Thill increasing his target from $360, and DiFucci and Lenschow adjusting theirs from $375 and $367, respectively [5] Market Context - Oracle's stock has seen substantial growth recently, driven by forecasts of significant revenue increases due to AI demand, with cloud infrastructure revenue projected to rise to $18 billion this fiscal year and nearly double to $32 billion by 2027 [6] - The company reported a remarkable 359% increase in contracted revenue, reaching $455 billion, following the acquisition of four multibillion-dollar contracts [7]