Oracle’s cloud computing software sales surprised analysts with a 12-billion-dollar increase in revenue, boosting Larry Ellison’s net worth by $12 billion.
Bloomberg Billionaires Index ranks Ellison as the ninth among the world’s richest people with a fortune of $119 billion. Despite his position, he is just behind ex-Microsoft Corp. CEO, Steve Ballmer and just one spot ahead of Warren Buffett.
Oracle, a U.S. software company, generates most of Ellison’s fortune. According to the company’s proxy filing for September 2021, he owns more than 40% of the business. Approximately 1.5% of Tesla is owned by the American-born billionaire, according to the company’s proxy statement for 2021.
Oracle’s shares jumped 15.6% Friday after the company reported sales and earnings for the second quarter of 2022 that beat analyst expectations.
On Friday, Deutsche Bank raised the price target for Oracle from $110 to $120 and upgraded it to a buy rating. According to Oracle, it had its best quarter in several years, beating expectations across the board and guiding well above it for the remainder of the fiscal year.
A note from Deutsche Bank analysts reads, “Once again, Oracle’s strategy is being validated. But it also appears we are finally seeing a meaningful change in the mix of the company’s finances.”
Deutsche Bank analysts wrote that the next leg up in ORCL would be driven by confidence in OCI (Oracle Cloud Infrastructure) as a credible player in the broader public cloud market, despite its valuation multiple that hasn’t been seen for more than 15 years.
For the second time in 20 years, Oracle stock had its best day since March 2020. With the spike, its market cap increased by almost $38 billion, to $280.6 billion.
In the year ended May 31, 2021, Ellison was the largest shareholder and the founder of Oracle. Besides his stake in the Austin, Texas-based firm, he owns a sailing team, Indian Wells tennis tournament, and real estate, such as Lanai Island in Hawaii.