Oracle shares slide to a four month low as Larry Ellison loses $11 billion
Jewish billionaire Larry Ellison watched his fortune drop by $11 billion on Monday.
The short version
- Oracle shares fell 8.5 percent to a four-month low following a massive new financing plan.
- The company filed to sell $20 billion in debt and equity.
- Investors worry about soaring artificial intelligence spending.
Check your portfolio if you hold tech stocks. Oracle, the giant enterprise software company, just watched its shares tumble 8.5 percent on Monday to a four-month low, according to Forbes. Jewish co-founder Larry Ellison saw his estimated net worth drop $11 billion in a single day, landing his fortune at $160 billion.
The selloff came after the company revealed filings with the Securities and Exchange Commission to sell $10 billion in common stock and $10 billion in bonds. Oracle plans to use the massive $20 billion cash infusion for general purposes, including capital expenditures, paying off debt, and funding future artificial intelligence infrastructure.
Wall Street is growing increasingly nervous about whether the billions of dollars poured into artificial intelligence data centers will actually turn a profit. Despite the drop, Ellison remains eighth on the real time billionaires list, just ahead of Steve Ballmer, the owner of the Los Angeles Clippers basketball team, who sits at $159.9 billion.
The company reported a massive 121 percent jump in cloud infrastructure revenue in September, but the stock is still down over 30 percent in the last six months of trading. For anyone watching the tech markets, the message is clear that investors are demanding to see real cash returns before backing another round of artificial intelligence spending. Even billionaires feel the pinch when Wallصر decides to ask hard questions.
Photo: DronePhotographer, CC0, via Wikimedia Commons
