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Oracle chairman Larry Ellison added nearly $100 billion to his net worth on Wednesday, putting him within striking distance of Elon Musk’s fortune, as shares of the cloud computing giant rallied in what could be the firm’s largest single-day gain in decades.
Shares of Oracle soared 38% to around $334 Wednesday morning, setting fresh opening and intraday record highs, and pacing the largest intraday gain for the stock since a 43% increase in December 1992, when the stock traded at just over $0.60.
The rally raised Oracle’s market cap from $678.4 billion at Tuesday’s closing share price to around $940 billion as of Wednesday.
Wall Street focused on Oracle’s estimates released Tuesday for cloud infrastructure revenue, which CEO Safra Catz said would increase to $18 billion this fiscal year before nearly doubling to $32 billion in fiscal year 2027, and then $73 billion, $114 billion and $144 billion over the following three years.
Oracle also reported a 359% increase in remaining performance obligations, or contracted revenue that has yet to be recognized, to $455 billion, after the company reached four multibillion-dollar contracts with three different customers in the quarter, Catz said.
Ellison, who holds a roughly 41% stake in the company, ranks the second-wealthiest person in the world with a fortune estimated at $391.8 billion. His equity in Oracle rose from $279.7 billion as of Tuesday’s closing price to about $377 billion on Wednesday. Musk remains the world’s richest person with an estimated net worth of $436.3 billion.
During Oracle’s earnings call on Tuesday, several analysts applauded the firm’s leadership for its cloud computing forecasts. Deutsche Bank analyst Brad Zelnick said those on the call were “all kind of in shock in a very, very good way,” noting there was “no better evidence of a seismic shift happening in computing than these results that you just put up.” Oracle’s remaining performance obligations growth was “just really amazing to see,” TD Cowen analyst James Wood said, adding Oracle achieved a “momentous quarter.” John DiFucci, an analyst for Guggenheim Securities, said he was “blown away by what this looks like going forward,” later adding he believed Oracle’s estimates were a “career event happening right now, and it’s just amazing.”
Despite the historic rally for Oracle, the company reported first-quarter revenue and earnings that came below economists’ estimates. Oracle reported earnings per share of $1.47 and revenue of $14.9 billion, just below projections of $1.48 EPS and $15 billion, respectively, according to FactSet.