Topline
Larry Ellison dropped among the ranks of the world’s richest people on Thursday, falling to No. 3 as Oracle’s stock paced its worst single-day rout in nearly a year after the cloud services firm reported quarterly revenues that fell below Wall Street’s expectations.
The cloud services giant reported quarterly revenue that fell short of Wall Street’s expectations.
Getty Images
Key Facts
Shares of Oracle decreased by 13.1% to around $193.80 as of around 10:45 a.m. EST Wednesday, pacing the stock’s largest intraday loss since shares fell 13.7% in January.
A rout in Oracle’s shares comes after the company reported $16 billion in revenue in its latest quarter, below analyst estimates of $16.1 billion, according to FactSet, with the company reporting $5.8 billion in software sales, down from projections of just over $6 billion.
Despite missing on software revenue, Oracle’s second-quarter cloud sales rose 34% to $7.97 billion, beating estimates of $7.92 billion.
The company also reported $12 billion in capital spending in the quarter, well above the $8.3 billion expected by Wall Street.
Forbes Valuation
Ellison, Oracle’s chairman who stepped down as CEO in 2014, is the third-richest person in the world after $35.8 billion was cut from his net worth, estimated at $245.2 billion, after earlier falling to as low as fifth. Ellison previously held the No. 2 spot, now occupied by Google cofounder Larry Page ($260 billion), and ranks ahead of No. 4 Jeff Bezos ($242.9 billion), No. 5 Sergey Brin ($238.2 billion) and No. 6. 5Mark Zuckerberg ($224.6 billion). Ellison came within striking distance of Elon Musk, the world’s richest person with a $491.3 billion net worth, in September, as more than $110 billion was added to Ellison’s fortune during a surge in Oracle’s stock. Ellison became the second person ever to eclipse the $400 billion threshold with his net worth reaching nearly $405 billion, though he trailed Musk by roughly $31 billion at the time.