Larry Ellison's Net Worth Craters as Oracle Stock Drops

Larry Ellison‘s net worth is steadily shrinking as Oracle (NASDAQ:ORCL) stock continues its sharp sell-off. The shares have plunged from a record high of $345 to $114, their lowest level since April 2024, wiping billions of dollars off the company’s market value and significantly reducing Ellison’s wealth.

According to Bloomberg data, Ellison’s net worth fell by $5.25 billion on Friday, bringing his year-to-date losses to more than $80.9 billion. At his peak, his fortune approached $400 billion, briefly making him the world’s richest person. He is now worth about $166 billion and is the eighth richest person globally.

Oracle’s stock has plunged this year, even as its revenue and remaining performance obligations (RPO) continue soaring. Its recent results showed that its RPO jumped by $85 billion to $638 billion. Its revenue jumped by 21% to $19.2 billion. 

Wall Street analysts are optimistic that Oracle’s boom has more room to run. The average estimate is that its revenue jumped by 28% in the last quarter to $19.12 billion. The annual revenue is expected to jump by 32.6% this year to nearly $90 billion. 

ORCL Stock Has Plunged Amid Debt Concerns

Oracle stock has plunged this year, making it one of the worst performers in the S&P 500 Index. It retreated as investors remained concerned about its soaring debt. In its last earnings report, the company said that it will raise over $40 billion this year through equity and debt. It raised $43 billion in the previous year, with its total debt jumping to over $122 billion. 

Oracle’s debt has seen its yield jump in the past few months. The 2035 bond yield has jumped to 6.615%, while the 2052 bond soared to 8% from the year-to-date low of 5.87%.

On the positive side for Larry Ellison, Oracle has become one of the cheapest companies in Wall Street. Oracle has a forward price-to-earnings ratio of 14, lower than the sector median of 23 and its five-year average of 22. These numbers mean that the stock will likely rebound once investors start bargain hunting.

Larry Ellison’s net worth has also retreated because of the ongoing Tesla (NASDAQ:TSLA) stock weakness. Tesla dropped to $306 on Friday, its lowest level since July 28. It has slumped by over 38% from its highest point this year. 

Bloomberg estimates that Ellison owns about 1.4% stake in Tesla, which is now valued at about $15.6 billion. This figure has dropped from $22.4 billion at its peak earlier this year.

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