- Larry Ellison’s personal fortune plummeted by approximately $24 billion as Oracle’s stock took a significant hit.
- The sudden drop came despite Oracle executives forecasting massive, multi-year revenue growth that impressed Wall Street analysts.
- Shares fell by about 7%, marking one of the stock’s worst days this year, raising questions among investors.
- Despite the loss, Ellison remains the world’s second-wealthiest individual, with a net worth estimated at over $350 billion.
A Billion-Dollar Dent in a Tech Titan’s Fortune
In a dramatic turn of events, Oracle Chairman Larry Ellison saw his net worth fall by an estimated $24.1 billion on Friday as shares of his software giant, Oracle, tumbled. The staggering one-day loss highlights the intense volatility of the tech market, even for its most established players.
The Paradoxical Plunge
The sell-off was particularly jarring as it followed a highly optimistic forecast from Oracle’s leadership. Late Thursday, executives, including Ellison, laid out a bullish roadmap for the future, projecting an average annual revenue growth of 31% over the next five years. They anticipated sales reaching an incredible $225 billion by the fiscal year 2030, driven by soaring demand for AI and cloud infrastructure.
This rosy outlook was met with applause from Wall Street analysts. Guggenheim’s John DiFucci noted the estimates were “much higher than some have speculated,” while Barclays analyst Raimo Lenschow celebrated projections that pulled well ahead of existing forecasts.
Why Did Oracle’s Stock Fall?
A Lack of Clarity
Despite the impressive revenue targets, investors were left wanting more detail. According to Jefferies analyst Brent Thill, the market’s negative reaction could be attributed to the company’s failure to provide forward-looking commentary on its capital expenditure plans. With such aggressive growth in cloud infrastructure, traders were seemingly spooked by the uncertainty around the massive investments required to achieve those goals.
Wall Street Isn’t Panicking
Analysts Raise Price Targets
Despite the stock’s plunge, the expert consensus remains surprisingly positive, proving that the short-term dip may not reflect the long-term potential. In a show of confidence, several analysts raised their price targets for Oracle stock. Thill himself increased his target to $400, and both DiFucci and Lenschow followed suit with similar upward revisions. This suggests that the financial community believes the company’s fundamental growth story, powered by its multibillion-dollar cloud contracts, remains firmly intact.
The Race for World’s Richest
The $24 billion loss is a significant setback for Ellison in his wealth race with Elon Musk. Ellison, who briefly became the second person ever to surpass a $400 billion net worth last month, now holds an estimated fortune of $350.6 billion. This puts him further behind Musk, whose own net worth is climbing back towards the $500 billion mark. Nonetheless, Ellison’s 41% equity stake in Oracle ensures he remains one of the wealthiest people on the planet.
Image Referance: https://www.forbes.com/sites/tylerroush/2025/10/17/larry-ellison-loses-24-billion-as-oracle-shares-slide/