booktalesy Chapter 242 So how much money does Ernst actually have?
Chapter 242 So how much money does Ernst actually have?
Chapter 242 So how much money does Ernst actually have?
It's chaos, utter chaos!
The entire American internet industry was like a colorful set of clothes thrown into a washing machine, a complete mess.
On October 1st, when Microsoft, along with Hotmail and Yahoo Mail, dropped bombshells about major reforms to their email services, everyone thought that the email arms race in the internet industry had entered a white-hot stage.
But no one expected that Google Mail would add fuel to the fire by holding a press conference, where spokesperson Emily, with a smile on her face, announced another upgrade plan for Google Mail.
When pressed by the media about whether the upgrades were in response to reforms by Microsoft and Yahoo, Emily avoided the question entirely, never mentioning the competitors' names. She stated that the upgrade aimed to allow global internet users to enjoy high-quality internet products at a lower cost, which she described as Google's commitment to industry responsibility.
The news caused an uproar on the Nasdaq Internet sector.
On the opening day, internet-related stocks surged like they were on steroids, with Microsoft and Yahoo leading the charge, their gains leaving retail investors stunned.
In fact, the stock prices of these two companies had already quietly begun to rise two days prior.
But on October 1st, the increase suddenly turned from a trickle into a raging torrent, with a momentum that caught everyone off guard.
As an industry giant with a market value of over $200 billion, Microsoft's stock price has been growing steadily recently, and any fluctuations have been minor.
However, when the market opened that day, Microsoft's stock price rose directly by 4.3%, and that straight upward curve was particularly eye-catching on the candlestick chart.
For a company of this size, it is quite rare for its stock price to rise so rapidly without any major positive news.
Yahoo's stock performance can only be described as outrageous. If Microsoft's growth was steady and progressive, then Yahoo's stock price was like a runaway horse, akin to an 18-year-old who had taken a blue pill in the morning—soaring to the sky, impossible to control.
During the pre-market auction, Yahoo's stock price nearly hit its daily limit, rising by as much as 8.9%. Within just two hours of opening, the increase exceeded 10%, and its total market capitalization surged past the $40 billion mark.
It's like telling an age-old law of the internet: in a money-burning war, it's always the retail investors who end up paying the price.
The soaring stock prices of Microsoft and Yahoo acted like a magnet, attracting companies across the entire internet sector to follow suit, resulting in a sea of red across the Nasdaq internet sector.
A Wall Street analyst spoke candidly to the camera, saying, "The fierce competition between Microsoft, Yahoo, and Google's email services will inevitably wipe out all other email products on the market. At that time, the email field of the Internet industry will form a pattern similar to the three-way battle in the browser industry, which is also the reason for the surge in Microsoft and Yahoo's stock prices."
"Of course, the investment community values the Google ecosystem more. Whether it's the browser field or email, Google holds a dominant position."
When pressed by reporters about his views on Google's market capitalization, the analyst first shrugged, then slowly raised his hand, pointed upwards, and said in a pretentious tone, "Google's market capitalization? Only God knows."
"Google has made it clear that it will not conduct another round of financing before its IPO. However, there has been a rumor on Wall Street that if Google were to suddenly announce a new round of financing, even if Ernst raised the valuation to $300 billion, those giants on Wall Street would not hesitate to send their money to him, for fear of missing out on a great opportunity if they were a step too slow."
Google's dominant position in the browser and email markets is undeniable, and the enormous profits generated by AdWordsGG alone are enough to drive capital into a frenzy.
However, in this internet war, both Microsoft and Google are facing the pressure of fighting on two fronts.
Microsoft is in a better position, with its massive operating system business as a safety net, like having a gold mine at home. Even if the email business burns through cash, it doesn't have to worry about funding.
Google is different. It has to compete with Microsoft and Yahoo in the email market while maintaining its dominant position in the browser market. Its R&D investment remains high, and many people are worried about whether Google can withstand the pressure.
But Wall Street analysts are unfazed, confidently stating, "I don't think this is a problem for Google at all. According to our estimates, Google's revenue will surge again in September, likely exceeding $130 million."
"The exorbitant profits of AdWordsGG have astonished all financial institutions. No one expected that internet companies could make so much money from GG."
He added, "Although Google has spent a lot of money on R&D and is facing a two-front war, funding will definitely not be a headache for it. More importantly, Google's debt ratio is ridiculously low. If Google wanted to borrow, it could probably just wave its hand for five billion dollars, and banks would be scrambling to deliver the money to its door."
9
At Google headquarters, Ernst was watching a television program hyping up the internet industry. He shook his head helplessly and muttered, "Wall Street really doesn't miss any opportunity to expand this pie. What is clearly a competition between a few companies has been turned into an industry frenzy by them."
The TV program was a CBS financial program. In order to capitalize on the internet boom, the program team specially invited several so-called industry experts to talk about everything from the email battle to the development prospects of the entire internet field. It was like holding an internet industry summit.
During the program, the female host, dressed in professional attire and holding a script, asked with a smile, "Since Google completed its second round of financing in April this year, everyone has witnessed the rapid development of the internet industry. According to data we have obtained, the market capitalization of listed internet companies has increased by an average of 31.9% in the past six months. I wonder what the experts think about this issue?"
As soon as the female host finished speaking, the experts reluctantly moved their gazes away from her half-exposed chest, sat up straight, and prepared to offer their insights.
A bald man sitting in the middle cleared his throat, forced a smile that he thought would charm women, and slowly began, "Regarding this issue, I think it's quite normal; in fact, I think this increase is lower than I expected."
After saying that, he deliberately moved his buttocks forward and did a hip thrust that almost everyone has experienced before, before leaning back on the sofa.
Ernst was thinking to himself: Is this a place to discuss finance or to find a mate?
But the bald man showed no embarrassment and continued his rambling, "In fact, the valuations of internet companies are far below expectations. Take Microsoft, for example; its market capitalization has exceeded $2600 billion thanks to its operating system business. But if we compare that to Yahoo, its market capitalization is only $40 billion. Isn't that a huge difference?"
At this point, he shrugged. "I know Microsoft and Yahoo don't belong to the same industry, and their positions and revenues are not comparable. But when we look at market capitalization, we can't just look at these surface-level figures. The most important thing is the number of consumers, that is, the number of users."
According to data recently released by Yahoo, its monthly active users exceeded 2470 million last month. What does that mean? These 2470 million are all potential consumers!
He became increasingly excited as he spoke, his voice rising several decibels: "Once the internet industry finds a more suitable and diverse revenue system, all internet companies will experience a surge in profits. Investing in internet companies now is investing in the future."
Ernst, watching TV, rolled his eyes after hearing this, thinking to himself: This is pure sophistry, forcibly linking user numbers with future revenue, like a man saying that rubbing against someone doesn't count.
A large user base does not equate to profitability. How many internet companies have boasted hundreds of millions of users, yet ultimately went bankrupt because they couldn't find a profitable business model? This expert is clearly selectively ignoring these facts.
The program continued, and the host continued to ask, "So, we're back to that old question: just how much is Ernst worth?"
"Google is a private company and has never disclosed its revenue, financial statements, or shareholder information. However, according to our information, Ernst owns a very large stake in Google, at least more than 20%."
"9
Since Forbes released its wealth list, Ernst's inclusion with a net worth of $17 billion has sparked widespread skepticism across the United States.
He acquired MGM, which came with a lot of debt, but what about Dynamics? And Google, the company with the highest valuation?
Because no one knows the exact number of shares Ernst holds in these companies, speculation about his net worth has always been rampant and based on rumors.
This topic is brought up again whenever the valuation of his companies skyrockets.
Even Hamilton turned his gaze to Ernst upon hearing this topic, his eyes filled with curiosity.
Hamilton knew Ernst's shareholding in Google, which was approximately 11.7% of Google's total shares.
But he knew in his heart that the data was not true at all. Ernst had transferred most of the shares out through various operations. As for where they were transferred to and how much was transferred, only Ernst himself knew.
Ernst's exact net worth is now a mystery, and he is also very curious about it.
With the valuations of companies like Motion Pictures, MGM, and PayPal, could Ernst's net worth exceed $10 billion?
This is also the most exaggerated version reported by the media, with some tabloids claiming that Ernst's net worth exceeds 10 billion.
But many people don't believe it, after all, Ernst's rise to prominence has been too short. From founding Google to now, it's only been a little over a year. No matter how capable he is, it's impossible for him to accumulate billions of dollars in such a short time, right?
Of course, no one believed the $17 billion figure published by Forbes; most media outlets estimated it to be between $35 billion and $50 billion.
How could Ernst not know what Hamilton was thinking? He rolled his eyes and said irritably, "Boring."