Larry Ellison Cancels $7.5 Billion Oracle Stock Sale Plan
Oracle co-founder Larry Ellison canceled his plan to sell up to $7.5 billion in shares of the company he helped found, just one day after it became public knowledge through a regulatory filing. The reversal surprised Wall Street and removed concerns about potential downward pressure on Oracle's stock from such a large insider sale. Ellison owns nearly 40% of Oracle (ORCL), making his decisions highly influential for investors. Oracle has been heavily investing in its cloud infrastructure to support AI workloads, which is now the primary driver of growth. However, these investments have led to rising debt and negative free cash flow this quarter. Despite a strong backlog of $664 billion and new AI contracts, Oracle's stock has underperformed in 2026 due to investor concerns about financial strain. Analysts remain divided but generally optimistic: BMO Capital Markets lowered its price target while maintaining an Outperform rating; Morgan Stanley kept Equal-Weight with a higher target. The average analyst rating is Strong Buy, suggesting confidence that Oracle can manage its growth and convert backlog into revenue.
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