Larry Ellison’s Net Worth Plummets $24 Billion Amid Oracle Decline

Larry Ellison, the chairman of Oracle, recently faced a significant decline in his net worth. On Friday, the billionaire experienced a loss of approximately $24 billion due to a notable drop in Oracle’s stock price. This fall occurred despite optimistic revenue forecasts provided by the company’s executives, which analysts initially viewed favorably.

Larry Ellison’s Net Worth Decline

On Friday, shares of Oracle fell by about 7%, bringing the stock price down to roughly $291. This decline marked what is projected to be the second-largest drop for Oracle this year.

Oracle’s Revenue Forecasts

Ellison, along with CEO Clay Magouyrk, discussed revenue growth expectations with analysts late Thursday. The forecasts indicate an average annual revenue growth of 31% for the next five years. By fiscal year 2030, Oracle’s revenue is expected to reach $225 billion, while earnings are projected to rise to $21 per share, reflecting an average annual growth of 28%.

• Oracle’s estimated revenue for fiscal year 2030: $225 billion.
• Forecasted earnings per share by fiscal year 2030: $21.
• Projected average annual revenue growth: 31%.
• Projected average annual earnings growth: 28%.

Analyst Reactions

Despite the positive forecasts, analysts cited a lack of detailed information regarding Oracle’s capital expenditure plans. Jefferies analyst Brent Thill noted that the absence of forward-looking commentary may have contributed to the stock’s decline.

Some analysts, however, maintained a bullish outlook on Oracle’s future. Thill raised his price target for the stock to $400, while Guggenheim’s John DiFucci and Barclays analyst Raimo Lenschow also increased their targets to $400 and $367, respectively.

Ellison’s Current Status

Currently, Larry Ellison holds approximately 41% equity in Oracle, with an estimated net worth of $350.6 billion. The recent downturn placed him behind Elon Musk, whose wealth is estimated at $485.9 billion. Notably, Ellison came close to Musk last month after Oracle shares surged, briefly pushing his net worth above $400 billion.

Future Projections

Looking ahead, Oracle’s stock could see continued appreciation, especially in light of the strong growth projections linked to demand for cloud computing and artificial intelligence. Last month, Oracle forecasted its cloud infrastructure revenue to rise to $18 billion this fiscal year and nearly double to $32 billion by 2027.

This promising trajectory, coupled with a reported 359% increase in unrecognized contracted revenue, suggests that Oracle could be well-positioned for significant growth in the coming years, though analysts remain cautious about the company’s capital expenditure details.