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Oracle Pauses After AI-Fueled Surge Toward $1 Trillion Valuation

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Oracle shares fell 4% on Thursday, cooling off after a record-breaking 35.9% rally the previous day that had pushed the company’s market capitalization to $933 billion, edging it closer to the trillion-dollar elite. If losses hold, Oracle’s valuation will settle near $894 billion.

Ellison’s Billionaire Climb

The surge has also boosted co-founder Larry Ellison’s fortune to $371.7 billion, putting him within striking distance of Elon Musk ($441.2 billion) for the title of world’s richest person, according to Forbes.

What Fueled the Rally

Oracle’s rise has been powered by multi-billion-dollar AI cloud deals as companies race to secure massive computing power to lead in the AI arms race.

  • On Tuesday, Oracle reported its order backlog was on track to hit $500 billion.

  • The Wall Street Journal revealed OpenAI signed a $300 billion cloud deal with Oracle, one of the largest in history.

Market View

Analysts see the pullback as a breather.

  • Dennis Dick, chief strategist at Stock Trader Network: “A bit of buyer exhaustion here. I think the ‘buy the dip’ crowd is likely to re-emerge. The guidance was so incredible, hard to think that this story is over.”

Oracle’s stock has nearly doubled in 2025, making it one of the top S&P 500 performers, outpacing even the Magnificent Seven tech giants.

Valuation Check

  • Stock price: $314.45

  • Median price target: $342 (approx. +9% upside, LSEG data)

  • Forward P/E ratio: 45.3 vs. Amazon (31.3) and Microsoft (31).

Oracle’s premium valuation reflects investors’ conviction that its AI-powered cloud expansion will continue to drive outsized growth, even as short-term pullbacks test market momentum.

Bending Spoons to Acquire Vimeo in $1.38 Billion Deal, Taking Platform Private

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Vimeo announced Wednesday it will be acquired by Italian app developer Bending Spoons in a deal worth about $1.38 billion, ending its four-year run as a publicly traded company.

Under the agreement, Vimeo shareholders will receive $7.85 per share in cash, representing a 63% premium to the stock’s previous close. Shares surged more than 60% to $7.74 following the announcement.

Vimeo, spun out of Barry Diller’s IAC, has struggled since its 2021 IPO, losing around 90% of its market value. Despite a surge in popularity during the pandemic, the company has faced mounting competition from YouTube and lower-cost enterprise rivals.

Analysts expect Bending Spoons to implement aggressive cost-cutting and revenue-focused strategies to leverage Vimeo’s technology assets. Analyst Paolo Pescatore noted the deal could mark a turning point, given Bending Spoons’ track record of revitalizing acquired firms.

The Milan-based company, valued at $2.55 billion last year, owns apps such as Evernote and Remini, and acquired WeTransfer in 2023. Vimeo will become its largest acquisition to date. CEO Philip Moyer said the focus will be on expanding self-service tools, OTT streaming via Vimeo Streaming, and enterprise solutions.

Vimeo has already downsized, cutting nearly 10% of its workforce this year after layoffs of 11% in 2023 and 6% in 2022.

Allen & Company LLC advised Vimeo, while J.P. Morgan, Wells Fargo, and BNP Paribas advised Bending Spoons. The transaction is expected to close in Q4 2025, with Bending Spoons seen as a potential U.S. IPO candidate in the near future.

Atlassian to Acquire The Browser Company for $610 Million in AI Browser Push

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Atlassian (TEAM.O) announced on Thursday that it will acquire New York-based startup The Browser Company for $610 million in cash, marking its entry into the fast-growing AI browser market. Shares of the San Francisco-based software maker fell about 2% following the news.

The Browser Company, founded in 2019, developed the Arc and Dia browsers. Its latest product, Dia, launched earlier this year, is designed as an AI-driven workspace that can summarize webpages and perform tasks for users. Atlassian said it plans to position Dia as its primary work browser, integrating tasks and tools across the web with enterprise context.

The move comes amid intensifying competition in AI-enabled browsers. Nvidia-backed Perplexity’s Comet and Brave’s Leo have recently entered the space, while Microsoft’s Edge, bundled with Copilot, has become widely adopted in enterprises due to its Microsoft 365 integration and security features. Google Chrome continues to dominate globally with a 69% market share as of August, according to Statcounter.

The Browser Company previously raised $50 million in a Series B round that valued it at $550 million, per Pitchbook, and counted Atlassian Ventures, Salesforce Ventures, Figma CEO Dylan Field, and former Instacart CEO Fidji Simo among its investors.

Atlassian will fund the acquisition with existing cash reserves, which totaled $2.5 billion at the end of June. The deal, expected to close in its fiscal second quarter ending in December, is subject to regulatory approvals. The company said the acquisition will not be material to financial results in fiscal 2026–2027.