Igret did not readjust its fiscal year cycle after its IPO, and still calculated it based on the natural year.
On October 23, Yigret's third quarter financial report for 1995 was released together with the new annual "Forbes" America's 400 Richest List. Compared with the US$3.31 billion in the same period last year, the single-quarter revenue increased by 71%. $5.65 billion. Even though the company's net profit is only US$310 million, and even though the Forbes list steals most of the attention, this financial report can only be described as shocking to those who are interested.
Counting the US$3.91 billion and US$4.73 billion in revenue in the first two quarters of this year, Yigret's annual revenue in the first three quarters of 1995 has reached US$14.29 billion. It is expected that the full-year revenue in 1995 can easily exceed 20 billion. Dollar.
In 1994, Yigrit's annual revenue was only US$11.67 billion. For most companies, revenue exceeding the threshold of tens of billions of dollars and being able to continue to maintain a growth of about 30% is considered a high speed. Yigrit The expected revenue growth in 1995 can still reach more than 70%, which can only be said to be a miracle.
However, a careful analysis of Ygritte's detailed financial reports shows that there is no trace of water in this business miracle.
Due to the explosion of the Internet industry, Igret, which created the World Wide Web standard and firmly controls the browser entrance, owns Internet basic tool software, YWS cloud computing service, online advertising business, software and game stores, and e-commerce platforms. For other products, market demand has shown an exponential growth trend with the explosion of the entire industry.
With a monopoly on most of the core patents of World Wide Web technology, Igret is unique in its core products, and therefore has absolute pricing power.
Any enterprise or capital that wants to get involved in the Internet field must first purchase the full set of basic Internet tool software from Igret at an expensive price. Especially after these softwares have been converted from outright sales to subscription models, they want to take advantage of the loopholes and use pirated software. It's not that easy anymore.
After purchasing software, if you want to set up a website quickly and conveniently to provide services, using YWS directly is undoubtedly the wisest choice.
Subsequently, whether you are setting up a website or operating new technology-related products, if you want to promote them, you cannot avoid Igret's various online platforms. Yigret's software and game store is also the first choice channel for many small software and game developers who cannot afford independent distribution.
All kinds of things.
In 1995, the total amount of capital directly poured into the new technology field reached the level of hundreds of billions of dollars. The crazy burning of capital made Ygrit, who created the World Wide Web standard, naturally become the biggest beneficiary.
Even though Simon has been deliberately suppressing Yigrit from pursuing short-term interests too much at this stage, this new technology giant is still making money day by day.
Can't stop it.
Crazy capital is accelerating the development of the Internet industry, and Simon is happy to see the results. However, he does not want to see Yigrit fall into the same madness.
Therefore, during the morning conference call, Simon mainly took the trouble to repeatedly urge several responsible persons to seek stability.
Igret's crazy expansion in the early stage was mainly to launch more and richer online services and content in the shortest possible time in order to meet the needs of peer companies and attract the public to open network services. Now, this work can be taken over by other crazy capitals. What Igret has to do is to be patient and dig deep into his existing business, including software services, email, online payment, search engines, social networks, electronics, etc. Business etc.
If the time hadn't come yet, Simon would have wanted to streamline and slim down Ygritte right now.
Even though Simon repeatedly chanted the curse to the management, after the completion of the IPO, Yigrit has still made frequent big moves recently.
The first is a batch of data centers that are about to be built in overseas countries, eight at a time, located in the United Kingdom, Germany, China, Japan, Singapore, Italy, Spain, and Australia. Although the scales vary due to different local industry conditions, the eight data center, with a total investment expected to reach US$2.5 billion.
This plan is not only Igret's established strategy, but also a way to show his attitude to investors.
In the original prospectus, Eaglet emphasized that the funds raised in this public offering were mainly to promote overseas expansion. Simon also believed that all parties would not forget the promise made when Simon met with several Washington giants at the White House. .
A total of eight data centers with an investment of US$2.5 billion are the attitude of Igret.
Not only that, AOL, Cisco and even Verizon will cooperate with Ygritte's plan.
While AOL is improving its local infrastructure network, it has begun laying the company's own private trans-Atlantic submarine optical cable. It will also launch a trans-Pacific submarine optical cable plan with a larger scale and investment.
While starting to build a new batch of large-scale data centers, Igret has also recently announced a new recruitment plan of up to 20,000 people, of which only 3,000 are in the United States, and the other 17,000 are to expand global recruitment in various overseas branches.
The new technology industry bubble in the United States has indeed formed.
However, Ygritte, which leads the market in terms of market capitalization and attracts a lot of attention like a target, is actually the company with the least bubble content even compared to companies such as Cisco and AOL in the Westeros system.
Although the haze of the shutdown of the Wisconsin distribution center has not dissipated, when the first quarterly financial report after the IPO of Yigrit was released in the new week, it still caused a strong response from the market.
When Simon ended the remote video conference with Yigrit's senior management at around 12 noon on the East Coast, Yigrit's stock price had already risen by 6.1% since the morning's opening. By the time the New York stock market closed at 4:30 p.m. , Yigret's single-day share price eventually rose by 11.7%, and its market value soared from US$253.9 billion before the morning opening to US$283.6 billion.
The capital market has never lacked its irrational side, but some things are obvious.
After the U.S. stock market closed that afternoon, "Barron's" published an analysis article on its official website, pointing out that based on Yigret's current revenue volume of US$20 billion, if the company gives up its radical The expansion strategy began to pursue profits. According to the 20% net profit rate standard for new technology companies, Igret is enough to achieve an annual profit of US$4 billion.
Therefore, the market value of US$283.6 billion at the closing day, calculated according to this standard, is actually only equivalent to a price-earnings ratio of 54 times.
Considering that Yigrite still maintains an annual revenue growth rate of more than 70% after its revenue exceeded 10 billion U.S. dollars, the price-to-earnings ratio of 54 times is not only non-existent, but even quite conservative. It would be worthy to at least double it again. The true value of this company.
That is to say.
The market value of Igret has room for at least doubling, and is expected to eventually exceed US$600 billion.
When this article from "Barron's" was pushed to the homepage of the portal by Igret, there was no shortage of supporters, but it also quickly attracted a large number of opposing voices. Julian Robertson, the founder of Tiger Management, who publicly threatened to short Westeros technology stocks, bluntly criticized "Barron's" for being "grandstanding" in a CNN online interview that evening.
As a result, news soon spread on the Internet.
Because the entire Nasdaq market continued to rise during the period after Igret was listed, many hedge funds on Wall Street who followed Julian Robertson to establish short positions in technology stocks suffered heavy losses. Counting from October 6, two weeks By this time, the paper losses of Wall Street short sellers are likely to have exceeded nearly $1 billion.
If Igrit and other Westeros system technology stocks continue to maintain their current growth rate, many short sellers will liquidate and exit in a month at most because there is nothing they can do.
Being in the middle of the situation, Simon's information is more accurate, so he also knows more detailed inside information.
According to information collected by Cersei Capital's team, the recent losses of short sellers targeting Westeros system technology stocks have been no less than US$1.6 billion. However, the book profit of Cersei Fund Management Company, which specializes in hedging operations, is less than US$500 million, because there are also many bulls who entered the market after hearing the news.
There are more wolves and less meat.
On the contrary, Julian Robertson’s Tiger Fund actually suffered relatively small losses.
The Wall Street financier obviously encouraged a large number of cannon fodder to take the front line, and Tiger Fund did not establish many short positions.
After finishing his work during the day, Simon also made an appointment for a meal with Verizon CEO Raymond Smith in the evening, mainly to discuss the layout of the telecommunications field of the Westeros system after the Clinton administration is about to enact the Telecommunications Act.
When Simon bought Bell Atlantic, the predecessor of Verizon Telecom, he was mainly interested in Raymond Smith, who he remembered single-handedly expanding a local Bell into a telecommunications giant on par with AT-T. Limited by U.S. telecommunications regulations and industry antitrust regulations, the renamed Verizon Telecom has only concentrated its fixed-line business in a few states on the east coast of the United States in recent years.
However, the rapidly emerging mobile communications business does not have such restrictions, just like the Internet access service that America Online has taken the lead.
Therefore, Verizon Telecom's business focus in recent years has been mobile communications.
With Simon's unremitting support, during the mobile communication spectrum license auction held by the Washington authorities last year, Verizon alone spent US$1.8 billion and directly won half of the spectrum resources. Currently, Verizon Telecom's mobile communication The network has spread to the entire east coast of the United States.
In addition, various businesses of Verizon Telecom and other Westeros system companies such as America Online are also expanding rapidly in overseas spending.
During the calculation of Forbes magazine's wealth list this time, as a privately owned wholly-owned subsidiary of the Westeros Company, Forbes magazine gave a valuation of US$30 billion, and also claimed that because it has not been listed on the market Employees, the valuation of US$30 billion is still very conservative.
To avoid being watched, dinner was held directly at Simon's apartment on 68th Street in the Upper East Side.
Waiting for Lady A to deliver lunch to the two of them in person and then leave quietly, Raymond Smith was talking to Simon about things and looked at the still young face across the dining table, but his heart was filled with emotion.
Raymond Smith also got the latest issue of "Forbes" magazine first thing in the morning.
$700 billion!
When Raymond Smith just saw this figure, his first reaction was that it was incredible, even though his boss's net worth had reached US$300 billion last year.
According to the U.S. Treasury Department's expectations, the federal annual GDP in 1995 is expected to be only $7.6 trillion. The wealth of Simon alone has reached 9.2% of the federal GDP. This figure has far exceeded the 1.5% ratio of the Rockefeller family at its peak. Even the three major families of Morgan, Rockefeller, and Carnegie combined cannot compare. .
Looking around the world, this number is even more exaggerated.
Not to mention 1994, for which detailed statistics are already available, but for 1995, which has not yet ended, there are less than 10 countries with an estimated annual GDP exceeding US$700 billion. Raymond Smith specifically checked the information in the morning and found out this year's estimated GDP ranking. China, which ranks eighth in the world, has an annual GDP of only about US$730 billion.
China is a huge country with a population of 1 billion.
Spain, ranked ninth, has an estimated GDP of only US$610 billion in 1995.
This means that the personal wealth owned by this young boss alone is enough to rank 9th in the world.
Rich enough to rival a country.
As for whether there is any water in the figure of US$700 billion, after reading the special article in Forbes, Raymond Smith has no doubts at all.
Just the shares in four companies, Cisco, AOL, Ygritte and Daenerys, have contributed US$500 billion to his boss’s personal wealth. This is based on the statistics of the company's market value at the beginning of the month. At that time, Igret's market value was less than 230 billion US dollars.
And today alone, Igret's market value has reached a high of 283.6 billion US dollars.
According to the shareholding ratio of his boss in Ygritte, it is equivalent to an increase in net worth of nearly 30 billion US dollars in one day. This has exceeded everyone else on this year's Forbes list except for the second place Bill Gates with 57.3 billion US dollars. The third-placed Warren Buffett has a personal net worth of only US$12.6 billion, less than half of Simon’s one-day increase in net worth.
In addition to the four most valuable companies such as Cisco, the entire Westeros system, not counting the many subsidiaries of the Big Four, Simon has invested in or controlled companies in recent years. There are also countless companies, of which only the market value or valuation exceeds 100 Billion-dollar companies, still not counting the Big Four, there are 11 others including Cersei Capital, Nokia, Tinker Bell, Verizon Telecom, Melisandre, etc.
There are also countless other billion-dollar companies such as Qualcomm, Aaliyah, Instagram, Oldeker, ATI, etc. It is difficult to say which one of them will suddenly start to develop rapidly and become a corporate giant. ranks.
Just the shares of these companies are enough to raise another US$200 billion and there is still a surplus.
These are just the assets on the surface.
According to various rumors over the years, in addition to investing in a large number of unlisted companies at home and abroad, Westeros has even bought a large number of stocks of traditional corporate giants such as General Electric, Boeing, and Freddie Mac, just because they hold There is no specific information if the shareholding does not exceed 5% and does not need to be disclosed.
As for how Simon obtained enough funds to make the investment he wanted, it is not difficult to imagine this time when Forbes directly gave Cersei Capital a valuation of US$30 billion. Cersei Capital is a Wall Street financial upstart that is fully owned by the Westeros couple. Only the shares of its subsidiaries will be distributed to others.
Every major financial turmoil in recent years, whether it was the European currency crisis or the collapse of the Mexican peso, has always had the presence of Cersei Capital.
What's more, even without Cersei's capital, with the influence of the name Westeros, it would be easy to borrow money from various banks, even billions or tens of billions of dollars.
This is the way of the world. The richer a person is, the more banks like to lend money to them.
Moreover, it is worth mentioning that the hundreds of billions of dollars in social assets controlled by Black Rock Asset Management, a subsidiary of Cersei Capital, are a capital bargaining chip in the hands of the Westeros system that cannot be underestimated.
Compared with ordinary people who are confused about the figure of US$700 billion, Raymond Smith, who is at the top of this social pyramid, can better understand what this wealth means.
Today's Americans are inevitably exposed to information related to the Westeros system almost every day, and may use various products and services related to the Westeros system almost every day. This is the most intuitive display of Simon's personal wealth. , the Westeros system has begun to affect all aspects of Americans.
The industries involved in the Westeros system may not be as sensitive as energy fields such as electricity and oil. However, if Simon wants to deal with certain people now, he only needs to cut off the various industrial services he is involved in, and the people targeted will be very Not having a good time.
From the White House to civilians, there are no exceptions.
Therefore, after Raymond Smith learned about what happened at the Wisconsin Logistics and Distribution Center, he felt that the American Teamsters Union had really made a big mistake.
The United Auto Workers union's unrestrained demands brought down the huge automobile industry in the United States that could have dominated the world. With such obvious lessons learned from the past, coupled with the current anti-union trend in American society, how can Eagle Reiter hire truck drivers? The unions succeeded.
Using these unscrupulous methods and trying to suck blood directly from Ygritte Company will not only fail, but will only make Ygritte even more afraid of the American Truck Drivers Union. Coupled with the various chronic diseases accumulated within these old trade unions over the years, it is too easy to deal with them.
What's more, the person who controls Yigrit is the only super rich man in the world with 700 billion US dollars.
Not only that, on this year’s Forbes 400 Richest Americans list, in addition to the towering Simon, the entire Westeros system is emerging. The list of 400 people does not include Bill Gates and Larry Ellison. These are only the top rich people who are related to shareholdings but not the core of the system. There are 37 members of the Westeros system who are on the list because of Simon's personal support or the core executive of the Westeros system.
It also accounts for almost one-tenth of the entire list.
Through the generous contract Simon gave him a few years ago, Raymond Smith himself was lucky enough to be among them with a personal fortune of $450 million.
In a capitalist world like the West, all these people are a terrifying force that can destroy any force. In the entire Westeros system, all the forces are gathered together, let alone targeting a certain person or a certain company, even if it is a country, even if the country is the United States, it will inevitably be a struggle for other small countries. It is enough to easily destroy everything.
In the long history of mankind, those capitalist oligarchs who sold emperors and sold wars were nothing compared to the current Westeros system.