Following a record AI-driven spike in the previous session that brought the business closer to the trillion-dollar threshold and placed co-founder Larry Ellison within striking distance of being the richest person in the world, Oracle shares fell on Thursday.
Companies are spending billions to become leaders in the AI race, and the business software maker’s explosive rise fueled by a wave of multibillion-dollar cloud deals—brings attention to the competition for processing capacity.
Oracle’s stock dropped almost 4% after reaching a high of 35.9% on Wednesday. As of the latest close, the company’s market value reached a record $933 billion, but if losses continue, it is expected to drop to about $894 billion.
It’s hard to believe this narrative is ending since the direction was so amazing. In the upcoming months, Oracle’s order backlog is expected to reach half a trillion dollars, the company announced on Tuesday. On Wednesday, the Wall Street Journal also revealed that OpenAI and Oracle had inked one of the largest-ever contracts for processing power, worth $300 billion.
The value of Oracle’s stock has almost quadrupled this year, placing it among the SP 500 index’s top performers and outpacing the advances of the so-called Magnificent Seven firms.
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