KEY POINTS:
- Oracle has seen a 49% stock increase in 2024, driven by strong cloud business growth.
- Oracle founder Larry Ellison’s wealth has grown to $192 billion, making him the third-richest person globally.
- Oracle is partnering with major cloud providers like AWS, Microsoft, and Google to boost its cloud database offerings.
- Oracle’s cloud unit revenue surged by 45% year-over-year, though it still trails behind AWS, Microsoft, and Google in market share.
- Ellison is pushing for AI-driven innovations, including a future without passwords.
David Paul Morris | Bloomberg | Getty Images
Oracle Surges, Outpaces Competitors in 2024 Tech Market
Oracle’s Rise Amidst Legacy Tech Struggles
While legacy tech giants like Intel and Cisco face challenges in the AI-driven world, Oracle has emerged as a Wall Street favorite. Following a stellar earnings report, Oracle’s stock jumped 11% on Tuesday and continued its upward momentum, closing at a record high of $157.10 on Wednesday. The company’s cloud businesses have been key drivers of growth, helping Oracle achieve double-digit gains after each of its three quarterly reports this year.
Stock Performance: Oracle vs. Competitors
Oracle’s 49% stock gain in 2024 places it just behind Nvidia (up 136%) in the large-cap tech sector, while Intel has dropped 60%, and Cisco is down nearly 3%. Meta follows close behind Oracle with a 45% increase. The company’s strong stock performance this year stands in stark contrast to the single-digit or negative changes seen by other tech titans.
Ellison’s Growing Wealth and Oracle’s Growth Story
Oracle founder Larry Ellison, who turned 80 last month, is the biggest beneficiary of the company’s stock surge. With over 40% ownership, his net worth has climbed to $192 billion, making him the third-richest person globally, trailing only Elon Musk and Jeff Bezos. Oracle’s revenue rose 8% in the latest quarter to $13.31 billion, with growth projected to continue at 8-10% in the coming quarter.
Cloud Business Drives Oracle Forward
Oracle’s cloud business is a central driver of its recent success. Revenue in the cloud unit surged 45% to $2.2 billion year-over-year. Despite lagging behind Amazon Web Services (AWS), Microsoft, and Google in cloud market share, Oracle has struck key partnerships with these tech giants, including a recent collaboration with AWS.
Strategic Partnerships in the Cloud Era
Ellison, once a fierce critic of AWS, has now embraced cooperation, ensuring Oracle’s database software is compatible with AWS. Similar collaborations with Microsoft and Google have further boosted Oracle’s cloud growth prospects. These partnerships aim to meet client demands for seamless integration across cloud platforms.
Ellison’s Vision for a Future Without Passwords
Looking ahead, Ellison is pushing Oracle deeper into AI. In his recent earnings call, he voiced his determination to eliminate passwords, calling them “utterly ridiculous” and advocating for AI-driven login solutions. His vision is for devices to recognize users by sight, ensuring more secure and user-friendly authentication methods.