Larry Ellison, the co-founder of software giant Oracle, saw his net worth plummet by a staggering $18.73 billion in just one day as the company’s shares tumbled by approximately 12%.
According to data monitored by Forbes, Ellison’s net worth dropped from around $159 billion to $140.6 billion.
Oracle’s current share price stands at $109.61, a significant decrease from its initial $126.71 at the start of the previous day’s market trading.
Oracle shares experienced a sharp 12% decline, marking their steepest drop in over two decades.
This sharp decrease followed Oracle’s disappointing revenue report and weaker-than-expected guidance.
Oracle stock sees steepest percentage drop since 2002
The last time Oracle’s stock witnessed a steeper percentage drop was in March 2002 when it declined by 15%, marking the tail end of the dot-com bust.
Although Oracle’s earnings exceeded expectations, the company reported fiscal first-quarter revenue of $12.45 billion, falling short of the $12.47 billion analyst estimate.
For the upcoming quarter, Oracle projected revenue growth of 5% to 7%, which was below the average analyst estimate of 8%.
Oracle had been emphasizing the integration of artificial intelligence (AI) into its business operations, adding AI features to its Fusion Cloud and Human Capital Management Software.
However, analysts noted that investors had higher expectations for AI and cloud-related growth.
Oracle CEO Safra Catz mentioned challenges at the company’s Cerner unit, acquired for $28.2 billion in 2021.
The unit is undergoing a rapid transition to the cloud, causing temporary headwinds to its growth rate.
While revenue in Oracle’s cloud services and license support segment increased by 13% from the previous year, exceeding estimates at $9.44 billion, sales in the cloud license and on-premises license segment dropped by 10% to $809 million, missing estimates.
Despite the significant stock decline on that particular day, Oracle shares remained up by 34% year-to-date, outperforming the S&P 500’s 16% increase.
Larry Ellison, the world’s fourth-richest person, closely follows Jeff Bezos. Ellison, who owns approximately 35% of Oracle, stepped down from the CEO role in 2014 after leading the company for 37 years.
Throughout his tenure, he played a pivotal role in Oracle’s growth through various acquisitions, including the purchase of electronic health records company Cerner for $28.3 billion in 2021.