Oracle Stock Soars 41% as Market Cap Jumps $270 Billion

On September 10, Oracle's stock price experienced a significant surge, jumping over 40% following the opening of the U.S. stock market. By 10:06 PM Beijing time, the stock had risen by 41%, marking the largest intraday gain since 1992. This dramatic increase in stock price resulted in a substantial boost to Oracle's total market capitalization, which grew by nearly $270 billion to approximately $950 billion. This surge propelled Oracle ahead of major companies such as Eli Lilly, Walmart, and JPMorgan Chase.

The substantial rise in Oracle's stock price led to a massive increase in the wealth of its co-founder and current Chairman and Chief Technology Officer, Larry Ellison. At 81 years old, Ellison's wealth skyrocketed by $980 billion, setting a new record for the largest single-day increase in wealth. As a result, Ellison's total wealth rose to around $393 billion.

Oracle's recent financial report revealed that its remaining performance obligations (RPO) had surged to $455 billion, a 359% year-over-year increase. Notably, $317 billion of this amount was added in the first quarter alone. Oracle's CEO, Safra Catz, stated that upcoming and ongoing subscriptions would drive rapid expansion in the cloud infrastructure business over the next few years. She projected that this division would grow by 77% this fiscal year, reaching $18 billion, and continue to maintain strong growth, with annual revenue expected to reach $144 billion by the fiscal year ending in May 2030.

Several investment banks have raised their price targets for the tech giant. Wolfe Research increased its target price from $300 to $400, implying a 67% upside from the closing price and a market capitalization of $1.12 trillion. UBS raised its target price to $360 from $280. Deutsche Bank increased its target price from $240 to $335. Bank of America raised its target price from $295 to $368.