Oracle meltdown causes Larry Ellison to lose $25B in a single day

Oracle founder Larry Ellison, 81, lost $25 billion of his wealth in a single day, one of the biggest one-day wealth declines of the year.

This decline on Thursday came after the decline in Oracle’s stock roughly 11% to 13% Investors spooked by huge AI spending after its latest earnings report.

Oracle informed Fiscal second-quarter earnings after the bell on Wednesday showed strong revenue growth of 14% year-over-year, but still fell short of Wall Street’s revenue expectations. The company disclosed a big increase in capital spending that was well above analyst forecasts, spending about $12 billion on AI data centers during the quarter, exceeding Wall Street estimates of $8.3 billion.

Oracle’s stock price declined due to a combination of weak revenue and higher-than-expected AI spending, erasure of $80 billion At market price on Thursday. Investors wanted to see Oracle quickly turning AI spending into revenue. bloomberg,

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Because Alison is the boss about 40% According to Oracle, the share-price decline on Thursday directly translated into one of the largest one-day money losses ever. Bloomberg Billionaires IndexThe index estimates that this reduced Ellison’s net worth by approximately $258 billion, moving him from second place to third among the world’s richest people, Elon Musk and Larry Page are now the two richest people in the world, with a net worth of $462 billion and $268 billion respectively,

Ellison was briefly the world’s richest person in September after Oracle’s strong earnings report sent the company’s stock price soaring. Even after decline, Ellison remains wealthier than most tech competitors jeff bezoswhose net worth according to the index is $253 billion, and Mark ZuckerbergWhose value is 231 billion dollars.

Other tech billionaires have suffered similar or worse losses. In April, Zuckerberg lost about $24 billion of his net worth, while Musk lost $35 billion in three days. business insider,

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If Oracle’s AI bets start paying off quickly and its stock recovers, Ellison’s net worth could grow rapidly. However, continued concerns about AI spending could continue to weigh on both the shares and their fortunes.

alison Oracle founded in 1977 and served as CEO until 2014 before moving into the role of Chief Technology Officer. Since the introduction of ChatGPT in November 2022, Oracle has experienced significant increase Among business customers who are eager to use the company’s cloud computing services.

fell on friday oracle stock That continued, with shares down about 3.8% at the time of writing. The stock was down about 14.5% last month. oracle is 17th most valuable company In this world.

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Oracle founder Larry Ellison, 81, lost $25 billion of his wealth in a single day, one of the biggest one-day wealth declines of the year.

This decline on Thursday came after the decline in Oracle’s stock roughly 11% to 13% Investors spooked by huge AI spending after its latest earnings report.