TLDR
- Oracle’s quarterly results showed remaining performance obligations surged 359% to $455 billion, driving stock price gains that briefly made CEO Larry Ellison the world’s richest person
- Ellison owns approximately $384 billion across three main public investments: 41% of Oracle ($349 billion), Tesla shares worth $19.1 billion, and 77% of Paramount Skydance worth $16 billion
- Oracle secured a $300 billion cloud contract with OpenAI and is part of a TikTok consortium deal, with analysts highlighting benefits beyond revenue
- Tesla stock remains volatile due to CEO Elon Musk’s divided attention across multiple ventures and projects
- Paramount Skydance formed in August through a merger, backed by the Ellison family’s wealth and targeting media industry transformation
Larry Ellison’s recent surge to become the world’s wealthiest person, even briefly, has put a spotlight on his massive investment portfolio. The Oracle CEO’s fortune of approximately $384 billion is concentrated in three publicly traded companies that offer different opportunities for investors.
Oracle Corporation dominates Ellison’s holdings with his 1.16 billion shares representing about 41% of the company. At current prices near $298 per share, this stake is worth roughly $349 billion. The company’s stock price jumped after reporting quarterly results that showed remaining performance obligations increased 359% to $455 billion.
The surge reflects Oracle’s position in the growing cloud computing market. Multicloud revenue from partnerships with Microsoft, Alphabet, and Amazon increased more than 1,500% during the quarter. This growth has positioned Oracle as what analysts call the potential third-largest hyperscaler in cloud services.
Cloud Computing Contracts Drive Growth
Oracle recently secured a massive $300 billion cloud contract with OpenAI spanning approximately five years. This deal represents one of the largest cloud agreements to date and highlights the increasing demand for AI data centers. The company is also part of a consortium working to keep TikTok operational in the United States.
Bernstein analyst Mark Shmulik noted that Oracle’s TikTok arrangement provides benefits beyond direct revenue. The deal could help Oracle prove its AI inferencing capabilities and provide access to valuable data for these efforts. The analyst sees this positioning Oracle to become more relevant with consumer internet companies.
Tesla represents Ellison’s second-largest public holding with approximately 45 million shares worth about $19.1 billion. The electric vehicle company has delivered strong returns over time, with shares rising from $16 six years ago to over $425 currently. However, the stock experiences high volatility often tied to CEO Elon Musk’s activities.
Media Merger Creates New Opportunities
Musk’s involvement in multiple ventures including space exploration, social media, and government cost-cutting has created uncertainty around Tesla’s direction. The stock hit peaks in December before falling more than 50% in subsequent months. This volatility reflects investor concerns about leadership focus and company priorities.
Ellison’s third major investment is Paramount Skydance, where his family owns approximately 77% of the media conglomerate. The company formed in August when Skydance Media, run by Ellison’s son David, acquired Paramount. The family’s stake is worth around $16 billion based on the company’s $20 billion market cap.
Paramount Skydance trades at 12 times future earnings, making it relatively affordable compared to tech stocks. The company has access to substantial funding from the Ellison family fortune. David Ellison has already announced major deals including $7.7 billion for Ultimate Fighting Championship content rights.
The media company is also pursuing an acquisition of Warner Bros. Discovery, which owns HBO, CNN, and Warner Bros. studios. These moves reflect the company’s strategy to compete in the evolving entertainment landscape. The merger provides Paramount with technology connections that could prove valuable as the industry continues changing.
Oracle’s forward price-to-earnings ratio of 44 reflects high growth expectations but the massive contract backlog supports future revenue projections.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
