Oracle shares experienced a decline after a significant surge, despite the company’s strong performance and a major deal with OpenAI.
Oracle’s stock dropped by about 4% after it had climbed by as much as 35.9% on Wednesday. The company’s market valuation reached a record high of $933 billion but is now expected to fall to around $894 billion.
This growth has significantly impacted the net worth of Oracle’s founder, Larry Ellison. His fortune is now approximately $371.7 billion, primarily from his 41% stake in the company. In comparison, Tesla CEO Elon Musk’s net worth is $441.2 billion, placing him at the top of Forbes’ global wealth rankings.
The company’s success is attributed to a series of multi-billion-dollar cloud deals, including a reported $300 billion agreement with OpenAI for computing power. Oracle’s stock has nearly doubled in value this year, making it one of the top performers in the S&P 500 index.
According to LSEG data, the median price target for the stock is $342, which represents a potential 9% upside from its current price of $314.45. The company’s 12-month forward price-to-earnings multiple is 45.3, higher than Amazon’s 31.3 and Microsoft’s 31.
