Chapter 884 The Early Arrival of the Internet Low Tide

2423Chapter 884: The Early Arrival of the Internet Low Tide

The Nasdaq Index plunged today. It was sudden, and it was pouring down like a torrent.

This made many people panic. Many people on Wall Street were confused. They didn't know what happened to cause the Nasdaq to fall so wildly without any signs.

Faced with the sudden problem, the experts were dumbfounded for a moment, and Zhang Qi had never experienced such a test, so he turned his eyes to Fan Wubing for help. The division of Xiao Yindang said Yindang's advertisement "House' Fan Wubing received Zhang Qi's message and scratched his head. Although it was a bit rude, it made the audience feel more intimate. He organized his words and then said, "Actually. When the Nasdaq index hit the 5,000-point mark this year. Some financial analysts calmly saw the bubble in high-tech stocks. But this bubble is still getting bigger and bigger. Because the Nasdaq index has a strong speculative flavor. There are many people whose stock prices are completely out of touch with reality. At present, the average price-earnings ratio of the Nasdaq index is as high as 800 times. The sharp rise in the price-earnings ratio means that when the earning ability of listed companies decreases, the stock price rises relatively. Federal Reserve Chairman Greenspan has repeatedly pointed out that it is expected that the Nasdaq index will fall sharply from its peak one day. Xiao.

After he talked for a while, several experts finally came to their senses and joined the discussion. The original discussion about the Internet cafe industry was immediately put aside. Everyone was discussing a question: Is the plunge of the Nasdaq temporary or a beginning? What is the depth of this decline?

"After the longest economic growth period in history, the incentive for foreign capital to continue to flow into the United States has gradually decreased. On the contrary, some of the previous investments have been profit-taking. And the incentive to transfer funds from the United States to other regions to find opportunities is getting bigger and bigger. If a new round of capital flows is formed, it is not surprising that the Nasdaq index will fall by more than a quarter or even half from its high." Fan Wubing is also quite confident about this.

"Does Mr. Fan think that the Nasdaq will fall below 2,500 points?" Some people think that Fan Wubing's expectations seem a bit too high.

"No. My prediction is that after the shock, the Nasdaq will fall below 2,000 points. "Fan Wubing replied with a smile.

Listening to Fan Wubing talking about the bottom line of the Nasdaq here, people can't help but think of the time when the Nasdaq climbed to the 5,000-point mark. Some people even thought that the Nasdaq had the hope of climbing to the 10,000-point mark in the near future, and even surpassing the Dow Jones Index.

What's more, some people used the annual growth rate of the Nasdaq Index at that time to calculate that within a few months, the Nasdaq Index would surpass the Dow Jones Index and break through 16,000 points a year later. These comments seem really ridiculous now, but they also truly reflect people's great enthusiasm for high-tech stocks.

Fan Wubing said a few words amid the various complex expressions of the crowd,

"High technology does have an attractive side. It is the endless new technologies and high technology that make people's lives change with each passing day. While it brings happiness to mankind, it also brings huge wealth to the companies that own it. However, the ups and downs of the stock market tell people a truth: Only when this kind of happiness becomes real can the wealth of the company be real. Relying only on enthusiasm and pursuit, the bubble will always be a bubble.

In the next few days, everyone was attracted by the continued decline of the Nasdaq Index.

Fan Wubing himself knew very well that this decline was just the beginning.

In less than half a year, the Nasdaq stock market in the United States, which had been soaring proudly, suddenly turned around and fell without any warning. The comprehensive index fell by 40% from the highest 5,100 points in half a year. The market value of more than 8 trillion US dollars of companies evaporated, which exceeded the annual income of any country in the world except the United States.

AOL Time Warner alone will lose more than 100 billion US dollars in book assets, and almost all well-known Internet companies will suffer heavy losses. Cisco's market value will also fall by 70%, while Yahoo's market value will fall by 90%, and Amazon is no exception.

With the collapse of the global Internet bubble, several Chinese companies listed in the United States were not spared. Sina's stock price fell to a low of 1 US dollar, Sohu fell to cents, and NetEase was even worse. Its stock price was only 1 cent in the United States.

The immature Chinese Internet economy entered the trough of disillusionment early. Looking back, this may be a necessary pain. The newly sprouted buds can only mature after experiencing the test of frost.

Fan Wubing never thought that a stock market crash was bad news. In fact, he had been preparing for this day for a long time. Except for some stocks in key industries that must be retained, most of the stocks had been sold before Christmas. At this time, the main task of the company headquarters was not to do anything else. It was to count the recent earnings and consider how to invest this part of the new funds in various industries to obtain greater benefits.

In recent days, the media has been promoting the myth of the Internet economy, which implies that there is a sense of gloating over the plunge of the US Nasdaq. In fact, since the embassy was bombed, the Chinese mentality has always been to take pleasure in the misfortune of the beautiful.

The so-called myth of the Internet economy refers to the fact that the U.S. stock market has soared thanks to the rapid development of the high-tech industry. Many Internet companies have gone public and made huge profits by selling initial stocks. The Nasdaq index has gone from two to two in less than two years. Thousand points jumped to five thousand points.

At this time, when the stock market bubble burst, huge wealth evaporated, and Internet companies closed down and laid off employees one after another. The so-called illusion that Internet companies "can still develop a new economy and change economic laws even if they lose money" has also been shattered.

but. If you look at the overall situation, you will find that things are more complicated.

The burst bubbles were website companies on the stock market and small companies that had not yet gone public, and venture capital was transferred. Product sales have declined, but the basics of the network economy, including semiconductors, computers, infrastructure, software and other industries, have not been seriously damaged.

Large companies such as Microsoft and Intel are still making profits, their stock prices are rising, new technologies are being promoted and applied, new products are constantly coming out, online shopping is increasing, and web pages and Internet users continue to increase.

The temporary decline of the Internet economy is just a round of fluctuations caused by the cyclical trough of capital investment under high-tech conditions. In the United States, companies are about to get out of the trough through mergers, layoffs, reduction of imports, etc., and have quickly eliminated part of this crisis. transferred to Asia.

China's computer hardware production already accounts for one-third of the world's output. At this time, it will inevitably be affected by this round of fluctuations. The industry's products are oversupplied and in demand. Semiconductors, including the production of microprocessors and memory chips, have been experiencing a decline in operating income.

The increase in mobile phone sales is mainly due to the increase in network infrastructure network equipment company Cisco in the Chinese market. It has also recorded its second quarterly loss in eleven years. Optical fiber cables manufactured by Corning Incorporated and other companies have also experienced oversupply and inventory surge.

Throughout. against the backdrop of economic recession. Software sales are no longer as popular as in previous years. Take the Windows operating system launched by Microsoft as an example. Most of it is bundled with other products and sales are greatly affected due to security vulnerabilities.

The rise and fall of the stock market directly restricts the rise and fall of the industry. Many Internet companies in the United States were founded by the injection of venture capital. The Nasdaq stock market allows such companies to start operations before they obtain their first income. During the period of stock market boom, , a huge amount of capital rushed to buy a few stocks, which greatly drove up the stock price, and the bubble was born.

For example, the stock price of Alibaba, which designs business trading software, went negative within six months, rising from US$10,000 to US$1. Now their stock price has plummeted 98% to US$4. about. Some website companies simply went bankrupt and were dissolved.

During the dot-com bubble. Many website operators rushed to make a lot of money initially, but these companies actually did not have much operating income, no commendable performance, and no profit. They obtained capital from the stock market and expanded their scale and advertised heavily. It was once popular that the more you lose, the better your future will be. This kind of violation of economic laws will certainly not last long.

This year, due to the sharp fall of the Nasdaq index, the stock market has closed its door to Internet companies. The companies that can gain a foothold in the market are all in the semiconductor, computer, storage, infrastructure, security, and management industries. E-commerce companies for books and other goods, etc.

According to an analysis by the San Francisco-based Dotcom Consolidation Firm, the company's collapse was not due to fierce competition, but because venture investors' hope of investing in dot-com companies has disappeared, and they have suddenly closed the door to startups that are in desperate need of funds. , this is the main reason why many Internet companies have closed down.

Amid the noise of bankruptcies, industry mergers and acquisitions surged, with established large companies including Microsoft joining the ranks. They do not want websites, but acquire their favorite assets that are useful for building networks in the future, such as digital management tools, security measures for computer virus management, tracking hackers, mobile Internet, business operation software development, customer relationship management software, etc., for buyers Homes are attractive.

In fact, buyers are happy to report. It also revealed the future use of the Internet. Industries are directly controlled by the stock market, which can be said to be the stock market. Failure is also the stock market, the effective ones survive and the unfit ones are eliminated.

Fan Wubing's top priority is naturally to make large-scale acquisitions of Internet companies. This time, he is still targeting the circulating stocks in the stock market. For him, this part is cheap, he can come and go freely, and there is no burden. , of course, he is not in a hurry. Anyway, the decline of the Nasdaq index is just the beginning. Let the headquarters make a plan first and complete the task step by step. Xiao Yindang's split said that Yindang's advertising "house" actually made Fan Wubing feel a little distressed, and it was Cisco.

Although Fan Wubing also wanted to release some of Cisco's outstanding shares and then buy them back at a low price after the stock price fell, it seems that everyone is very interested in this communications equipment manufacturer. After only releasing a small part of the shares, There were more than a dozen strategic acquirers ready to make moves in the market, which made Fan Wubing's subordinates more vigilant and no longer dared to act rashly.

move.

After Fan Wubing learned about this situation, he felt helpless. After all, anyone can take a fancy to a good company. If he really wanted to transfer control of Cisco, I believe many people would rush over to break it up. head.

The Spring Festival is coming soon, and it’s inevitable to be busy again.

It's just that Fan Wubing is more concerned about the construction of Huafeng.com. At present, all physical industries are basically on the right track. Even if it is a large aircraft project, intense design and site construction work has already begun at this time. Fan Wubing doesn't have to worry about it anymore, so he always goes to Huafeng Online to browse around when he has something to do, and then See if there are any areas that need improvement and point them out to them.

On New Year's Eve, the whole family returned to the capital.

Seeing what Shen Ying and Xiao Qiang were talking to their mother Zhang Mei, Fan Wubing discussed the repurchase of shares in the three major portals with his brother Fan Kang.

"Now that we have fallen more than half way, is it time to take action?" At this time, Fan Kang was very impressed by his brother Fan Wubing's budget. He did not expect that after buying tens or hundreds of dollars per share, it would actually fall. In this miserable situation? “’

Fan Wubing said to him. "The time is running out, don't worry, it's never too late to pay attention if the price drops below one dollar."

"It's not that bleak, right?" Fan Kang said in surprise.

"It is estimated that it will drop to tens of cents!" Fan Wubing curled his lips and said.

When Fan Kang heard this, his eyes suddenly lit up and he said, "Damn! If it falls below one dollar, I will buy as much as you have! This is a really cheap bargaining chip!"

Fan Wubing replied with a smile. "There's no rush. It's hard for Internet stocks to turn around within two years anyway. Just take your time and take your time. Things that should be yours won't run away. They will eventually come back to you."

Fan Kang nodded and said, "I just didn't expect that the stock market would fall so violently. On the contrary, the domestic stock market is doing very well, which makes people feel itchy."

Fan Wubing said with a smile. "Aren't you not clear about what's going on in the domestic market? The virtual fire is too strong, and sooner or later it will follow the lead of the Nasdaq. Moreover, the overall market value is not high, and there is no room for speculation. You'd better not get involved, so as not to hurt yourself. Cause trouble, after all, there are still high calls for a crackdown on evil villagers recently.

Fan Kang said, "Actually, there is no reason to crack down on black dealers. Everyone is a player. When you enter this casino, you are willing to accept defeat. If you don't want to make money, who can drag you in?"

Fan Wubing smiled slightly and was about to say something when he heard the sound of brakes coming from the yard outside. Apparently his father Fan Heng had rushed back.