Latest news with #LarryEllison
Yahoo
a day ago
- Business
- Yahoo
Why Oracle Could Be the Next Stock to Join the $1 Trillion Club
Oracle (ORCL) has captivated market attention in recent years. The explosion of artificial intelligence (AI) has turned into a major tailwind for the company, so much so that analysts now see Oracle as a serious candidate for entry into the coveted $1 trillion club. The company wields some of the globe's most robust and cost-effective data center infrastructure tailored for AI workloads. Demand is outstripping supply by a significant margin, prompting Oracle to earmark over $25 billion for new data center construction in fiscal year 2026. 2 Outstanding Stocks Under $50 to Buy and Hold Now Nvidia's Bringing Sovereign AI to Germany. Should You Buy NVDA Stock Here? A $1 Billion Reason to Buy MicroStrategy Stock Here Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Larry Ellison, Oracle's Chairman and CTO, envisions surpassing all competitors combined in data center presence. His ambitious projection places Oracle on track to scale between 1,000 and 2,000 locations over the long haul, marking a tenfold increase from its current footprint. In addition, CEO Safra Katz emphasizes Oracle's trajectory towards becoming not only the foremost cloud application company globally, but also one of the largest cloud infrastructure providers. This trajectory could very well push Oracle toward the $1 trillion mark analysts now anticipate. Oracle (ORCL), based in Austin, Texas, has carved out a commanding position in the enterprise software world. With a market cap of $590 billion, it is a key player offering cloud solutions that help design, build and manage complex deployment models across industries. Over the past 52-weeks, ORCL stock has surged by 45.8%, and within just three months, it has jumped 41%, leaving investors with more than a little to smile about. Despite trading at 39.4 times forward earnings and 10.1 times sales, figures that certainly tower above sector averages, the valuation might not be out of line. The reason lies in Oracle's expanding growth trajectory. On June 11, Oracle reported its fiscal 2025 fourth-quarter earnings that outpaced Wall Street forecasts. The day after the results, ORCL stock surged more than 13% to close at a then-record high of $199.86, leading gains across the S&P 500 Index ($SPX). The company posted $15.9 billion in revenue for the quarter, marking an 11% increase year over year and beating analyst expectations of $15.5 billion. Cloud Services and License Support revenue climbed 14%, while Cloud Licenses and On-premise Licenses rose 9%. What stood out was Oracle's RPO in Q4, which soared 41% to an all-time high of $138 billion. Management signaled that RPO could more than double in fiscal 2026. The company closed the quarter with non-GAAP net income rising 5.9% from the prior year to $4.9 billion. Non-GAAP EPS climbed 4.3% from the year-ago level to $1.70, beating Wall Street's forecast of $1.64. Oracle ended the quarter with $11.2 billion in cash and marketable securities. The company issued robust guidance, forecasting revenue and earnings growth to be 'dramatically higher' in fiscal 2026. That translates to an estimated $67 billion in net revenue, reflecting a nearly 16% year-over-year increase. The acceleration is expected to be driven by Oracle's expanding global footprint and growing capacity utilization. Analysts echo this optimism, projecting fiscal year 2026 EPS to rise 20.2% year over year to $5.29. Looking ahead to fiscal year 2027, the bottom line is forecasted to grow another 14% from the prior year to reach $6.03. Following Oracle's latest quarterly results, Wall Street analysts appear to be reading from the same bullish script. Bank of America took a measured stance by maintaining a neutral rating, but that did not stop it from hiking its price target on ORCL stock from $156 to $220. Meanwhile, KeyBanc could not hide its optimism. Calling the growth projections 'stunning,' it lifted its target to $225 from $200. Deutsche Bank went one step further, pushing the bar to $240 from $200, framing Oracle's earnings as a 'watershed cloud moment.' Consensus on the Street leans heavily positive, assigning ORCL an overall rating of 'Moderate Buy.' Of the 35 analysts tracking ORCL, 21 are firmly in the 'Strong Buy' camp, one favors a 'Moderate Buy,' while 13 recommend to 'Hold' the stock. The average price target of $214.41 represents potential upside of 2%, while the Street-high target of $246 suggests that the stock can climb as much as 17% from the current price level. On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Oracle's Larry Ellison just rocked the billionaires club—a $40 billion gain has made him the second-richest man, ahead of Bezos and Zuckerberg
Oracle cofounder Larry Ellison is now the second-richest person in the world, after his cloud-computing business's stocks soared last week. The chairman's net worth surged by more than $40 billion, outpacing the wealth of Jeff Bezos and Mark Zuckerberg and reaching a high of $250.9 billion. But he'll have a hard time topping the riches of his close friend Elon Musk, who sits on a cool $405.8 billion fortune. No one was in a better mood last week than Larry Ellison—the Oracle cofounder shot up Forbes' billionaire rankings list, reaching the number two spot, right below his close friend Elon Musk. Ellison's net worth now stands tall at $250.9 billion after Oracle's recent earnings report triggered its shares to skyrocket. With approximately 41% of Oracle's shares in his name, the cloud-computing mogul saw his net worth climb by over $40 billion in a matter of days. On Thursday last week, his fortune grew by $25 billion, and increased by another $16 billion on Friday: easily two of the largest daily swells in billionaire net worth that week, according to Forbes. Now Ellison has overtaken Amazon's founder, Jeff Bezos, who is currently worth $229 billion, and Mark Zuckerberg, who has a $240 billion net worth, in the billionaires club. The one person he hasn't topped yet is Elon Musk—Ellison's close friend, who is still the world's wealthiest man with $405 billion in riches. There's nearly a $155 billion difference between their respective net worths, so Ellison has his work cut out for him if he ever hopes to reach number one. Last Wednesday, the afternoon earnings report was dubbed a 'watershed' moment for the cloud-computing company. It was also a big moment for Ellison's wallet. The report shows Oracle's total revenue for the 2025 fiscal year rose by 8%, reaching a whopping $57.4 billion. The $1.70 adjusted earnings per share outperformed Wall Street's expectations, alongside its unprecedented $15.9 billion in sales. One day after these figures were released, Oracle's stock soared by 13%—and by midafternoon Friday, it rose another 7% to a record of $215 per share. Ellison, the chairman and CTO of Oracle, subsequently enjoyed an 11-figure surge in net worth. Last Tuesday afternoon, the day before the cloud-computing titan released its earnings report, Ellison's net worth stood at $213 billion. While the 80-year-old entrepreneur may feel on top of the world right now, there's no telling where he'll be in 2026. Billionaires' wealth fluctuates all the time—Bernard Arnault, founder and CEO of luxury fashion house LVMH, was the world's richest person at the start of 2024 with $231 billion. Today, he's in seventh place with a net worth of $142 billion, thanks to tumbling stocks. However, TD Cowen analyst Derrick Wood said Oracle's 2026 fiscal year, starting this month, will be a 'major inflection point' for the business' cloud infrastructure services, propelled by 'massive demand for AI training workloads.' And Ellison himself sees the promise of what lies ahead. 'Oracle's future is bright in this new era of cloud computing. Oracle will be the number one cloud database company,' Ellison said in the business' earnings call last Friday. 'Oracle is already prospering in this new era of cloud computing and AI, and it's just the beginning.' Ellison sees the next year as a new frontier for Oracle, which could mean another big payout for the executive. But even if he takes the number one spot for the world's richest person, Musk probably won't have hard feelings—after all, they're good friends. 'I am not sure how many people know, but I'm very close friends with Elon Musk, and I'm a big investor in Tesla,' Ellison said during a 2018 conference call with analysts. Ellison and Musk are two peas in a pod—both are wildly successful tech entrepreneurs with big personalities. The Oracle cofounder has repeatedly defended Musk, arguing against public backlash that he 'doesn't know what he's doing,' saying he 'loved' articles about the Tesla founder 'smoking dope.' In 2018, Musk even appointed Ellison to his Tesla board, drawing scrutiny from critics who argued it's harder to maintain objectivity with friends on corporate boards. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
4 days ago
- Business
- Globe and Mail
Oracle Stock Pops as Company Shows It Is Catching Up in the Cloud Race. Here's What That Means for Investors
When it comes to cloud computing, Oracle (NYSE: ORCL) has long been an afterthought to the big three players in the space: Amazon's AWS, Microsoft's Azure, and Alphabet's Google Cloud. However, Oracle is starting to make some noise in the segment and is putting up stats that suggest it is now the fastest grower in the space. Let's delve into Oracle's fiscal Q4 results to see how cloud computing is powering its results and what it means for investors moving forward. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Cloud revenue growth to accelerate While Oracle saw its cloud infrastructure (OCI) revenue soar 52% year over year in its fiscal 2025 Q4 to $3 billion, what got investors excited was the company's forecast that its cloud infrastructure revenue would soar by more than 70% in fiscal 2026. Meanwhile, Oracle founder Larry Ellison boasted that the company will "build and operate more cloud infrastructure data centers than all of [its] cloud infrastructure competitors combined." The company pointed to its strong remaining performance obligations (RPO) as a reason for the confidence in its growth outlook, noting that most of these contracts are non-cancellable. In the quarter, RPO jumped 41% to a whopping $138 billion. It said cloud RPO climbed 56% and is now nearly 80% of its total RPO. More importantly, it is looking for about a third of the RPO to be recognized as revenue over the next year. Oracle said that demand for its OCI services continues to "dramatically" outpace supply, with consumption revenue soaring 62% year over year. As such, it plans to increase its capital expenditures (capex) to more than $25 billion in fiscal 2026 to help meet increasing demand. It said most of this spending will be on revenue-generating equipment that is going into data centers and not for land or buildings. The company also highlighted the strength of its cloud database services, which saw revenue climb 31% year over year, and its autonomous database, which saw consumption revenue surge 47%. It said that its database service being accessible across multiple cloud providers gives it a competitive advantage in the market. For its fiscal 2025 Q4 ended May 31, Oracle's overall revenue rose 11% year over year to $15.9 billion, which handily topped the $15.6 billion analyst consensus, as compiled by LSEG. Cloud revenue increased 27% year over year to $6.7 billion. Within the cloud segment, cloud infrastructure revenue surged 52% to $3 billion, as mentioned above, while cloud application revenue increased 12% to $3.7 billion. Adjusted earnings per share (EPS), meanwhile, rose 4% to $1.70. That topped the $1.64 analyst consensus. Looking ahead, Oracle forecasts fiscal 2026 revenue to increase by 16% in constant currency to more than $67 billion, with cloud revenue growing by more than 30% in constant currency. That's a big acceleration in growth from the 9% overall revenue increase in constant currency and the 24% cloud revenue growth it saw in 2025. Meanwhile, it's expecting its RPO to more than double on the year. For fiscal Q1, it guided for revenue to increase by between 12% to 14% and cloud revenue to climb by between 26% to 30%. Adjusted EPS is projected to rise by between 45% and 7%. Can the stock's momentum continue? While Oracle's OCI business still trails No. 3 player Google Cloud by a wide margin in terms of revenue, and it isn't spending nearly as much in capex as its larger cloud competitors, the company is nonetheless still making a lot of noise in the space. Its projected 70% OCI growth this fiscal year is much higher than its larger competitors, with Microsoft and Alphabet tending to have between low to mid-30% cloud computing revenue growth and Amazon in the high teens. The momentum in its cloud business, meanwhile, is helping accelerate the company's overall growth as well. With the company projecting mid-teen overall revenue growth this year, it is no longer a sleepy giant. It is looking to return to being a growth stock. From a valuation perspective, Oracle trades at a forward P/E of just under 30 based on 2026 fiscal-year analyst estimates, while its price/earnings-to-growth (PEG) ratio is below 0.4. A PEG ratio under 1 is typically viewed as undervalued. However, unlike most large-cap tech stocks, Oracle does carry a lot of debt. It ended its fiscal year with net debt of $81.4 billion. Meanwhile, it spent all of the operating cash flow it generated ($20.8 billion) on capex ($21.2 billion). This is one reason why it can't accelerate its data center infrastructure investments by much more than it already is spending. Balancing it all out, I think the shift from more of a value stock to a growth stock should help propel the stock higher, especially as Oracle becomes one of the best ways to play the trend in cloud computing. Throw in the potential of the Stargate project, which isn't off the ground yet, and the stock can really start to cook. Should you invest $1,000 in Oracle right now? Before you buy stock in Oracle, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oracle wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor 's total average return is988% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Time of India
5 days ago
- Business
- Time of India
Larry Ellison becomes world's No. 2 billionaire, pushing Jeff Bezos to fourth
Synopsis Jeff Bezos has slipped to fourth place on the Forbes Billionaires List as Oracle co-founder Larry Ellison climbs to the No. 2 spot with a net worth of $258.8 billion, surpassing both Bezos and Mark Zuckerberg. The rally in Oracle shares fueled Ellison's rise. Elon Musk remains the world's richest, followed by Warren Buffett and Larry Page in fifth and sixth positions.
India.com
5 days ago
- Business
- India.com
Meet man, who earned Rs 2241088200000 in just one day, not Mukesh Ambani, Gautam Adani, but he is…, left behind…
Larry Ellison's Net Worth: Oracle co-founder Larry Ellison saw an increase in his net worth, which increased by $26 billion (Rs 2 lakh crore) in just one day. After this Ellison became the second richest person in the world. He left behind Mark Zuckerberg and Jeff Bezos. He is now at $243 billion at second rank after Elon Musk who tops the list of world's richest persons with $411 billion. Who Is Larry Ellison? Larry Ellison is a tech entrepreneur and co-founded Oracle Corporation in 1977 with Bob Miner and Ed Oates. Earlier it was named as Software Development Laboratories (SDL) but later renamed Oracle. In the last five decades, Oracle has become a leader in cloud computing and enterprise solutions. Oracle provides cloud applications and infrastructure services to many businesses. It most used services are Customer Relationship Management (CRM): Oracle develops software to help businesses manage customer interactions. Enterprise Resource Planning (ERP) : Human Capital Management (HCM), and Supply Chain Management (SCM) used to streamline operations. Cloud Services: Oracle allows companies to store and manage data on its servers by eliminating the need for on-site hardware. Larry Ellison has been a billionaire since 1993 and holds 41% stake in Oracle. Over the years he played a major role in Oracle's current position. Oracle's Market Performance Oracle recently announced its financial results for the first quarter of FY2025, reporting a revenue increase of $15.9 billion (Rs 1 lakh crore), an 11% increase from the same quarter last year. It had a net income of $3.4 billion (Rs 30,000 crore). For the previous fiscal year, Oracle generated a total revenue of $57.4 billion (Rs 500 lakh crore). After its strong performance Oracle's stock skyrocketed by 13.5% in a single day, closing at $215.22 per share. This surge added a huge amount to Ellison's wealth, taking him to second place in the global rich list.
