Larry Ellison is $15 billion richer after Oracle's best day on stock market since 2021
$Oracle(ORCL)$ stock price rose 11.75% on Tuesday, the largest single-day increase in more than two years, and closed at $127.54, a record high.
The company previously reported third-quarter results that exceeded expectations, with revenue from its cloud services and licensing support divisions growing 12%.
1. $Oracle(ORCL)$ Earnings Highlight:
The cloud computing giant announced third-quarter results that were better than Wall Street expectations, and said it had signed a series of large-scale cloud computing service contracts driven by artificial intelligence demand, superimposing the third-quarter results as of February.
In the financial quarter, Oracle's remaining performance obligations (RPO, a measure of Oracle's sales backlog) were US$80 billion, significantly exceeding analysts' expectations of $59 billion, indicating that the global boom in artificial intelligence technology has a far greater positive impact on Oracle than investment. cognition.
Performance data shows that $Oracle(ORCL)$'s Q3 revenue as of February was $13.3 billion, a yoy increase of 7.1%, in line with market expectations; earnings per share excluding some projects was $1.41, better than market expectations of $1.38.
In the third fiscal quarter, Oracle's closely watched cloud computing business revenue increased by 25% year-on-year to $5.1 billion, slightly higher than market expectations of $5.06 billion. Oracle executives also revealed that an "exciting joint announcement" with Nvidia will be released soon.
Riding on the trend of AI, Oracle's stock price has increased by 40% in the past year.
2. Founder's personal wealth jumped by $15 billion on Tuesday
$Oracle(ORCL)$ founder Larry Ellison's personal fortune jumped by $15 billion on Tuesday. Reaching about $146 billion, it currently ranks fifth on the Forbes list of the world's richest people, behind Meta CEO Mark Zuckerberg and ahead of Warren Buffett.
Lawrence Joseph Ellison, Forbes 2023
https://www.forbes.com/
His company focuses on enterprise software and is therefore a direct competitor of SAP. Ellison himself is very lively and has a reputation in the business world as an "unusual" businessman.
Mike Wilson titled his biography of Ellison The Difference Between God and Larry Ellison.
https://www.forbes.com/
3. Price Targets for $Oracle(ORCL)$
Based on 25 Wall Street analysts offering 12 month price targets for Oracle in the last 3 months. The average price target is $136.35 with a high forecast of $160.00 and a low forecast of $105.00. The average price target represents a 6.91% change from the last price of $127.54.
Wedbush Securities gave Oracle a 12-month target price of $150 and maintained a "buy" rating after Oracle announced its latest results;
Mizuho analyst Panigrahi reiterated his "buy" rating on Oracle and raised the price target from $140 to $160;
Bernstein maintained the agency's "outperform" rating on Oracle and raised its price target to $159 from $147;
Jefferies maintained the agency's "buy" rating on Oracle and raised its price target to $150 from $140;
UBS maintained its "buy" rating on Oracle and raised its price target to $150 from $130.
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