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Oracle’s Larry Ellison Briefly Becomes World’s Second-Richest Person, Surpassing Jeff Bezos

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Oracle Chairman Larry Ellison briefly claimed the title of the world’s second-richest person on Friday, overtaking Amazon founder Jeff Bezos. Ellison’s net worth reached $208.4 billion shortly after the market opened before settling at $197 billion, according to Forbes’ real-time billionaires list. Meanwhile, Bezos’ fortune stands at $204 billion. Elon Musk remains the world’s wealthiest person, with a net worth of $252 billion.

Ellison’s rise in wealth was driven by Oracle’s best stock market performance since 2021. The company’s shares surged, closing at $162.03 on Friday, bolstered by an optimistic revenue forecast through fiscal 2029 and strong quarterly results. Oracle’s stock has risen about 54% this year, second only to AI chipmaker Nvidia among large-cap tech stocks.

As Oracle’s co-founder and its largest shareholder with a 40% stake, Ellison has significantly benefited from the company’s resurgence in cloud infrastructure and the growing demand for its cloud databases. Over the past year, Oracle has strengthened its cloud offerings by partnering with Amazon Web Services (AWS), Microsoft, and Google, positioning itself for further growth in both public and private cloud markets.

Ellison’s wealth fluctuated as he and Bezos competed for the second spot on the world’s richest list, just days after Oracle announced a new partnership with Amazon. Under this partnership, Oracle’s database software will be available for AWS customers, further boosting Oracle’s cloud presence.

 

Jim Cramer Recommends Chip Stocks to Buy During Market Dip

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Jim Cramer believes that chip stocks have experienced an excessive sell-off, and he sees an opportunity for investors to buy on the dip. He pointed out that the reasons for being bullish on this sector earlier in the year are still valid. The semiconductor exchange-traded fund SMH, for example, has fallen over 18% from its July highs but remains up more than 25% year-to-date.

Cramer attributed the recent pullback to concerns about declining enterprise spending on artificial intelligence and worries over a potential recession before the Federal Reserve cuts interest rates. Nvidia’s recent quarter beat estimates but didn’t impress investors accustomed to massive outperformance, leading to fears that the AI boom may be short-lived. However, Cramer argued that Nvidia’s results reflect supply limitations rather than demand issues, maintaining that the AI boom is still “very real.”

Cramer highlighted several stocks in the chip sector worth considering:

  • AMD: Cramer praised AMD’s solid demand and performance, acknowledging its strong position in the semiconductor space.
  • Micron: Cramer sees Micron as a leader in memory chips and considers the stock undervalued based on next year’s earnings estimates. The need for memory in data centers presents a significant growth opportunity.
  • Arm: With licensing royalties providing steady revenue, Arm has seen its stock soar since its IPO. The stock got a further boost after reports indicated Apple would use Arm’s chip design for the iPhone 16.

 

K-pop’s Record-Breaking Success Fails to Boost Agency Stocks

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South Korea’s K-pop industry is experiencing unprecedented success with global chart-toppers and record-breaking performances, yet this surge in popularity is not reflected in the stock performance of its leading management agencies. Despite K-pop acts like BTS and Blackpink achieving international acclaim, shares of South Korea’s “Big Four” K-pop agencies—Hybe Corporation, SM Entertainment, JYP Entertainment, and YG Entertainment—have all suffered significant declines this year. Hybe’s stock has dropped 29%, SM Entertainment has lost 36%, YG Entertainment has fallen 37%, and JYP Entertainment has seen the most severe decrease, plummeting 56%. This stark contrast between the industry’s soaring global presence and the agencies’ poor stock performance is attributed to a complex mix of governance issues, declining earnings, and shifting market dynamics. While K-pop streaming numbers have skyrocketed globally, the Big Four have faced operational losses and declining physical album sales. In August, South Korean artists were discovered 2.2 billion times on Spotify, reflecting strong streaming performance, yet physical album sales—a crucial revenue driver—have declined, impacting earnings. The temporary hiatus of BTS members for military service and Blackpink’s focus on solo projects have also contributed to investor concerns. Despite the strong fan base and increasing digital streaming revenue, physical sales still dominate agency revenue, making their decline particularly impactful. Analysts remain optimistic, forecasting that upcoming artist activities and concerts will potentially boost the agencies’ financial performance in the latter half of 2024 and into 2025.