What’s behind Oracle’s stock rally, which allowed its founder Larry Ellison to beat Elon Musk and become the richest man in the world?
Oracle shares are taking Wall Street by storm. And that’s not all. Shares soared 40% on Wednesday, thanks to the company’s impressive demand figures for its cloud services. The stock had already risen 45% since the beginning of the year.
The cloud giant is thus on track for its best session since 1992, as it approaches the $1 trillion market cap. At the time of writing, Oracle has a market cap of $957.08 billion.
Oracle founder Larry Ellison has thus added approximately $100 billion to his net worth. According to Bloomberg, he surpassed Tesla CEO Elon Musk in the ranking of the world’s richest people.
Larry Ellison is now the richest man in the world
The increase brought Ellison’s total wealth to $393 billion, surpassing Musk’s, which stands at $385 billion, according to the Bloomberg Billionaires Index. This is the index’s largest one-day gain ever.
Musk’s dominance had lasted nearly a year.
Ellison, 81, co-founder of Oracle and now chairman and CTO, has most of his net worth invested in Oracle.
Why Oracle shares are rising today
After the close of the US trading session on Tuesday, the company declared its Remaining Performance Obligation (RPO)—a financial metric that measures the total amount of future revenue a company expects to earn from existing customer contracts but has not yet delivered or invoiced—of $455 billion, up 359% from the previous year.
Oracle has long benefited from the artificial intelligence boom thanks to its cloud infrastructure business and access to Nvidia’s graphics processing units (GPUs), both of which are necessary to handle large workloads. But competition is fierce, and Oracle faces cloud services competitors like Microsoft, Amazon, and Google.
Oracle told the public that it expects cloud infrastructure revenue of $18 billion in fiscal 2026 and expects annual revenue to reach $32 billion, $73 billion, $114 billion, and $144 billion over the next four years.
But all that glitters is not gold. Oracle’s revenue forecast overshadowed the disappointment seen in other key metrics reported in the quarter: revenue and net income.
The company reported adjusted earnings of $1.47 per share for the quarter, just below the $1.48 per share analysts had forecast. First-quarter revenue was $14.93 billion, below the $15.04 billion forecast.
Original article published on Money.it Italy. Original title: Larry Ellison supera Musk, è lui l’uomo più ricco al mondo. Azioni Oracle volano a +40%
