- Larry Ellison slid to become the world’s eighth-richest person on Friday, falling behind Nvidia’s Jensen Huang after his net worth shed $6 billion, as a monthslong decline in Oracle shares has lowered the firm’s chairman from his spot near the peak of the wealthiest billionaires.
- Ellison's net worth is estimated at $192.6 billion as of market close Friday, marking a $104 billion decline since he ranked the world’s second-richest on June 2.
- Oracle shares peaked at over $250 on June 1, then plunged roughly 54% to a low of $114.50 on July 28, though the stock rebounded slightly to $150.52 as of Friday.
- Oracle told investors it expected to raise $40 billion through debt and equity financing, with capital expenditures surging 162% to $55.7 billion.
- S&P Global downgraded Oracle's credit rating in July, citing concerns about the cost of its AI infrastructure business.
Larry Ellison has seen his net worth plummet by $104 billion since June, now standing at $192.6 billion, as Oracle shares have declined nearly 40%. This drop has pushed him to the eighth position among the world's richest, behind Nvidia's Jensen Huang, who is valued at $194.4 billion.12
Oracle's stock has faced significant challenges, falling from a high of just over $250 on June 1 to a low of $114.50 by July 28, before rebounding slightly to $150.52 as of Friday. The company's shares have been on a downward trend, with a 23% decline since January, despite a recent uptick.3
The decline in Oracle's stock is attributed to concerns over its capital expenditures, which surged 162% to $55.7 billion, and the expectation to raise $40 billion through debt and equity financing. Analysts have raised alarms about how Oracle will fund its ambitious spending plans, especially as more than 50% of its remaining performance obligation is tied to OpenAI.4
Jacob Bourne, an analyst at eMarketer, noted the broader concerns regarding Oracle's ability to meet its revenue projections. Meanwhile, S&P Global downgraded Oracle's credit rating, citing the potential risks associated with its rapidly expanding AI infrastructure business.5
“Oracle's market valuation has dropped $443 billion from its September peak to $433.5 billion, as investors worry about the firm's heavy spending on AI infrastructure. Analysts caution that more than half of Oracle's $638 billion backlog is tied to OpenAI, and S&P Global downgraded its credit rating in July.”
Oxford Mail
Forbes
