Oracle released a solid first-quarter earnings report after-hours on Thursday, but investors were not pleased with next quarter’s guidance.
The company’s stock dropped 6.5% between the end of normal trading at 4 pm Eastern Time on Thursday and noon on Friday. The decline erased more than $14 billion of Oracle’s market capitalization.
That fall also meant a bad day for Larry Ellison—cofounder and executive chairman of the technology firm—who owns a quarter of the company’s outstanding shares. His net worth declined by $3.7 billion through 12 pm Friday, according to Forbes’ real-time rankings of the world’s richest people. He remains the seventh-wealthiest person on the planet and is $1.7 billion richer than LVMH CEO Bernard Arnault, who is in eighth place on the billionaire ranks.
Oracle released its first-quarter report on Thursday afternoon. Earnings rose 14% versus the same period in 2016, but the company issued a lower-than-expected earnings projection for the second quarter. That news quickly turned many investors sour.
The recent fall notwithstanding, Oracle’s stock has performed tremendously well of late. Shares are up nearly 29% since the start of the year. So too is Ellison’s net worth; his fortune has climbed $12.5 billion since January 1.
Ellison, 73, cofounded Oracle in 1977. The company went public nine years later, and by the end of the dot-com bubble shares had soared more than six-hundred fold. The stock collapsed alongside the rest of the tech world soon after, and it has slowly clawed back market capitalization ever since.
Ellison stepped down as Oracle’s chief executive in September 2014 and was replaced by Mark Hurd and Safra Catz. He now serves as chief technology officer in addition to his role as executive chairman.
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