"Larry Ellison, executive chair and chief technology officer, founded Oracle Corp. ( NYSE: ORCL) in 1977. Recently, it has become a tech behemoth, largely because of its key position in the burgeoning artificial intelligence (AI) business. His net worth, according to the Bloomberg Billionaire list, is $283 billion, which makes him the second-richest person in the world. That net worth has risen by $91 billion since the start of the year, largely because of Oracle's success."
"A portion of his net worth is at risk and is likely gone for the time being. Poor earnings pushed Oracle's stock down as much as 12%. As recently as late October, it was up 80% year to date. The decline in Oracle's stock could shave billions of dollars off Ellison's net worth in less than a day. He owns 41% of Oracle, and before the stock drop, its market cap was $635 billion. That made it the 16th most valuable company in the world."
"Oracle Corp. shares fell 11% in early trading after the company reported a jump in spending on AI data centers and other equipment, rising outlays that are taking longer to translate into cloud revenue than investors want. Fiscal second-quarter cloud sales increased 34% to $7.98 billion, while revenue in the company's closely watched infrastructure business gained 68% to $4.08 billion. Both numbers fell just short of analysts' estimates."
Larry Ellison founded Oracle in 1977 and built it into a major technology company centered on artificial intelligence. His net worth is $283 billion, rising $91 billion year-to-date driven largely by Oracle's performance. Recent results showed revenue of $16.1 billion (up 14%) and earnings of $2.10 per share (up 91%), while fiscal second-quarter cloud sales rose 34% to $7.98 billion and infrastructure revenue gained 68% to $4.08 billion. Heavy spending on AI data centers and equipment and cloud results that slightly missed estimates prompted an up-to-12% stock decline, risking billions of Ellison's wealth. Ellison owns 41% of Oracle and holds other assets including the island of Lanai and investments in Paramount/Skydance.
Read at 24/7 Wall St.
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