Larry Ellison, who turned 80 last month, is having a remarkable year as Oracle continues to shine in the tech sector. Unlike its peers, Intel and Cisco, which are grappling with the evolving AI landscape, Oracle has become a Wall Street favorite.
Following a stronger-than-expected earnings report released on Monday, Oracle’s stock soared 11% on Tuesday and reached a record closing price of $157.10 on Wednesday. This significant increase follows a trend seen after each of Oracle’s three quarterly reports this year, all driven by the company’s robust cloud business. In contrast, Oracle’s stock had only one double-digit increase in 2022 and none last year.
Analysts’ Positive Outlook
Oracle’s shares have surged 49% this year, trailing only AI chipmaker Nvidia, which has seen a 136% increase. Meta is the next best performer among large-cap tech stocks, with a gain of 45%.
Struggles of Competitors
In stark contrast, Intel’s stock has plummeted by 60%, and Cisco’s has decreased by nearly 3%. Both companies recently announced significant layoffs in their earnings reports, reflecting ongoing struggles in the industry.
Ellison’s Financial Gains
The rally in Oracle’s stock has significantly benefited Larry Ellison, who co-founded the company in 1977 and remains its chairman. Ellison, who owns over 40% of Oracle’s outstanding shares, has seen his net worth rise to $192 billion, making him one of the wealthiest individuals globally. He trails only Tesla CEO Elon Musk ($251 billion) and Amazon founder Jeff Bezos ($202 billion).
Steady Growth Amid High-Tech Standards
Despite the impressive stock performance, Oracle’s growth remains steady rather than explosive. Revenue for the latest quarter increased by 8% year-over-year to $13.31 billion. For the current period, CEO Safra Catz expects growth to range between 8% and 10%, reflecting a stable, ongoing expansion rather than high-growth volatility.
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