Within hours, Oracle went from releasing weak quarterly results to becoming the absolute spotlight of the markets, with a stock surge of more than 31% in pre-market trading, skyrocketing both its valuation and the wealth of its co-founder and CTO, Larry Ellison. The 81-year-old entrepreneur now ranks as the world’s richest person, surpassing Elon Musk, according to the Bloomberg Billionaires Index.
Mediocre results but an enormous backlog
In its second fiscal quarter of 2025, Oracle reported revenues of $14.93 billion, slightly below the $15.02 billion expected by analysts. Earnings per share (EPS) also fell short by just a cent. The most notable weakness was in the cloud division, the area the company has been pushing for years to reinvent itself beyond its traditional enterprise software products.
However, the key wasn’t just in the reported numbers but in the future revenue backlog (RPO): Oracle announced its committed contract portfolio grew nearly fourfold quarter-over-quarter, thanks to four mega-deals signed with three strategic clients: OpenAI, NVIDIA, and Meta.
An electrifying forecast that excited the market
Oracle also surprised with aggressive projections for its cloud business:
- Oracle Cloud Infrastructure (OCI) revenues of $18 billion in fiscal year 2026, a growth of 77%.
- Projected expansion to $32 billion, $73 billion, $114 billion, and $144 billion over the next four years.
- The majority of these revenues are already secured in the current RPO.
These figures make more sense when considering the Stargate AI project, a massive infrastructure initiative where OpenAI has partnered with Oracle to deploy data centers with up to 4.5 GW capacity, with planned payments of $30 billion annually to Oracle in just three years.
In July, OpenAI further strengthened its agreement with Oracle to develop an additional 4.5 GW of capacity. The first complex, Stargate I, is already under construction in Abilene (Texas), in collaboration with Crusoe Energy.
A rally unleashed and a meme stock aura
The market responded with euphoria. Oracle’s shares, which traded around $76 in pre-market, surged driven by retail demand, to the extent that some analysts compare the phenomenon to the craze of “meme stocks” like GameStop or AMC. The key difference: Oracle actually generates substantial profits and has long-term contracts in place.
For traditional investment funds, the rally has driven its valuation so high that it becomes nearly impossible to justify buy decisions based on valuation metrics. Nevertheless, retail investors’ speculative appetite has been enough to sustain the climb.
Larry Ellison, the new king of billionaire ranks
The surge immediately impacted Larry Ellison’s fortune. According to Bloomberg, Oracle’s CTO saw his wealth increase by $70 billion in just hours, reaching a total of $364 billion, surpassing Elon Musk’s estimated $384 billion. With the index updates, Ellison is now recognized as the world’s wealthiest person.
An ironic detail: in a world dominated by AI narratives, it’s the CTO of a company—and not an EV or rocket CEO—who takes the throne of personal wealth. However, this crown might be temporary: Tesla still needs to approve a compensation package for Musk valued at $1 trillion.
Frequently Asked Questions (FAQ)
Why did Oracle’s shares rise despite the weak results?
Because the market prioritized the massive growth in its cloud contract backlog, tied to multibillion-dollar agreements with OpenAI, NVIDIA, and Meta.
What is the Stargate AI project?
It’s an OpenAI plan to deploy data centers with capacities between 4 and 5 GW, valued at over $100 billion, with Oracle as a key infrastructure partner.
Is Oracle’s rally comparable to a meme stock?
In terms of retail participation and rally speed, yes. But unlike GameStop or AMC, Oracle has solid revenues and guaranteed long-term contracts.
How long will Ellison hold the top spot over Musk?
That will depend on Oracle’s stock performance and whether Tesla’s compensation package is approved, which could bring Musk back to the top.