In a twist of financial fate, Larry Ellison, the chairman of Oracle, has taken a tumble in the billionaire rankings, now sitting at the world’s sixth richest person. Just this past Tuesday, he slipped behind Meta’s own Mark Zuckerberg, who clinches the fifth spot. Ellison’s net worth took a hit, dropping by a staggering $5.3 billion to $225.8 billion, following a dip in Oracle’s shares. This news might stir up some concern for the tech giant, especially as investors keep a skeptical eye on the company’s future.
As the stock market bell rang on Tuesday, Oracle’s shares fell 2.3% to approximately $178.10 each, adding to a more than 9% decline for the year. Not exactly the upward trajectory Ellison would have hoped for after recently scoring a deal that should have made waves – leading a major investment in TikTok’s U.S. operations. It’s ironic that despite this potentially lucrative partnership, Oracle’s stock is sinking like a lead balloon. This is a classic case of “what goes up, must come down.”
Now, what’s causing this downturn? Economists are speculating it might have something to do with the cautious outlook painted by Morgan Stanley analysts, who have slashed their target price for Oracle stock by 33%, from $320 to $213 a share. They’ve suggested that the company’s ambitious plans for infrastructure expansion might weigh heavier on its revenue and costs than investors would like to see. While analysts on Wall Street still expect Oracle to be buoyed by its long-term potential, the average price target has settled at just over $289, reflecting the general nervousness surrounding the tech sector.
Let’s take a moment to put this situation in perspective. Just last month, Oracle’s shares soared to an all-time intraday high of $345.72 on September 10th, driven by an astonishing 35% surge—its biggest single-day jump since 1992. This spike momentarily grew Ellison’s net worth beyond the previously unthinkable $400 billion. Fast forward to now, and those gains have evaporated almost entirely with shares plunging nearly 49% since that high. One can only imagine the rollercoaster of emotions Ellison has been riding.
Despite these recent setbacks, it’s worth noting that Ellison briefly held the title of the third wealthiest person in the world after TikTok’s new U.S. business deal was finalized last week. In a partnership with private equity firm Silverlake and Abu Dhabi-based investment firm MGX, Oracle will manage TikTok’s U.S. user data while retaining a 15% stake in the firm. While this sounds promising on paper, Oracle’s shares dipped 4% following the announcement, suggesting that investors are a bit less than thrilled about what this venture could mean for the company’s bottom line.
In the ever-turbulent world of finance, where fortunes can shift faster than a hiccup, Ellison’s experience serves as a reminder that even the mightiest can feel the heat of the market’s unpredictability. Amidst the woes of Oracle’s declining shares, one can only wonder if Ellison’s next move will have him reclaiming his lofty spot among the world’s richest—only time will tell.
