Google's share prices doubled within 30 minutes of the market opening. This is a dream start.
Those who had bought Google shares in advance will get more than 100% returns if they sell now!
At this moment, there are still many people waiting to buy shares on Nasdaq. The number of orders is very high, but the trading volume is very low.
There are very few transactions, and the share prices continue to rise.
Sixty minutes after the market opened, the share prices increased by more than 130%, triggering another circuit breaker.
Not only are the investors going crazy, but even Google's shareholders are also going crazy.
For example, after Larry Page got listed, he still owns 31.2% of Google's shares. Based on the IPO price, his net worth should be around 15 billion USD.
But now, his net worth had reached 34.4 billion USD, and his growth rate is insane.
However, there was one thing that was very awkward, and that was, Larry Page was not allowed to dilute his shares in the next two years.
That means all his shares cannot be traded or transferred. The 34.4 billion USD is like a deposit, and he cannot withdraw it.
Also, even if he can withdraw it two years later, he can only withdraw it bit by bit. He is not allowed to cash out all his shares.
From this, one can see how much the internet industry is worth.
Although Larry Page's net worth is 34.4 billion USD, his actual net worth is only around 100 million USD.
If Google continues to grow smoothly, and its net worth reaches 50 billion USD in two years, Larry Page might be able to cash out 5% of his net worth and get a few billion USD.
But if Google continues to grow badly, his net worth might drop to 3.4 billion USD in two years.
It might only take one to two years for his net worth to increase from 34.4 billion USD to 3.4 billion USD. Also, during this process, Larry Page cannot dump his shares. At most, he can only pledge his shares.
Furthermore, it is risky for the pledgee to pledge shares in US stocks. If the market value falls too much and the company cannot repay the money, not only will the shares be taken back, but the voting rights will also be taken back. The company might even be given to someone else for the sake of the money they pledged.
Therefore, in summary, if the company could not pull out a long-term stable growth line, no matter how high its value was, it would continue to shrink sooner or later.
Now, Larry Page and the rest of Google's shareholders are frustrated because of this.
Google's share prices had soared, but it has nothing to do with them now.
Trying to get some cash to live a good life? He would have to wait at least another year or two.
But to those investors who bought Google's shares in advance, today is a joyous day. They can sell their shares anytime they want.
…
After that, Google's share price slowed down a little.
11 am. One and a half hours had passed since the market opened, and Google's share price had reached 170 USD.
At this time, the stock price was close to $192.8, an increase of more than 140%.
The difference between Nasdaq and China was that there were no breaks in between, so the stock price had been rising slowly.
By one o 'clock in the afternoon, the stock price had risen by more than 150%.
At 2 PM, the stock price broke through 220 USD, increasing by more than 175%.
The entire Wall Street and the US media went crazy. All the media were reporting Google's share prices, and Google's market value had increased from 48 billion USD to 132 billion USD.
Even Li Mu was a little dumbfounded.
If Google was able to stand firm, Makino Technology's market value would exceed 500 billion or even 600 billion USD on the first day of the IPO.
But from Li Mu's perspective, Google's share price will not be able to stand firm at 100 billion USD so soon.
The reason why the share price was so high today was because of the concept, Makino Technology, Feng Yu's endorsement, and his capital. The share price will surely calm down soon.
Sometimes, this is how Wall Street plays. A company that knows how to tell a story and play with concepts will get listed. They will try their best to raise the share price and attract retail investors to chase after them. When the retail investors chase after them, they will slowly sell their shares, and when they have sold enough, the share price will start to fall, and the retail investors will be trapped.
Li Mu's ideal value of Google's market value was around 70 billion USD, and he had been supporting Google from behind the scenes. Without his support, Google's market value should be around 34 billion USD at most.
Qutoutou was also like this when it got listed. The share price rose by 200% on the first day, and the share price reached 20 USD. But soon, it fell to 3 USD.
But Google's share price is stronger than Li Mu expected.
Feng Yu thought the share price will start to fall as the market closes, but the share price is still rising.
Half an hour before the market closes, the share price reached 232.8 USD, up 191%!
Google's market value increased from 48 billion USD to 139.7 billion USD, and it is only a short distance away from 140 billion USD.
Google's share price rose again after the market closes.
Now, the share price stopped at 248 USD, and it increased by more than 210%!
The market value exceeded 148.8 billion USD, and on the first day of listing, the market value increased to 100.8 billion USD!
Larry Page was in disbelief, and he whispered to Li Mu, "Li Zong, this share price is too ridiculous …"
Li Mu smiled and said, "Such a big battle is a great opportunity for those who participated in advance to make money. Of course, they will add fuel to the fire."
As he spoke, Li Mu added, "Fortunately, the market value was relatively high before the IPO, so it's more difficult to raise it. If the market value was 30 billion at the time of the IPO, it would have risen to 300% today."
Larry Page smacked his lips and said, "It looks good, but only those in the know know that all the money was taken away by those investors and organizations. I don't even have a single share in the market …"
Li Mu smiled and said, "I guess with the character of Wall Street, their media that serves the capitalists will continue to promote Google after the market closes. They will try their best to blow up the bubble of Google. Maybe the stock price will reach a new high of 250 USD tomorrow. At that time, I don't know how many individual investors will be cheated and trapped into buying the stock."
Larry Paige nodded.
The share price has nothing to do with the company's performance.
If it is closely related to the company's performance, the company will only release a quarterly report, and the share price should fluctuate once a quarter.
Actually, the share price is supported by the company's performance, and it is supported by external investors.
When external investors promote a company, they are not trying to make the company better. They are trying to make money for themselves.
They own Google shares, and they naturally want these shares to bring them the most benefits.
Where are the benefits coming from? By selling the shares at a high price.
It is useless to just have a high share price. They must sell the shares when the share price is high to earn real money.
First, they will use the media to promote Google and let the people think that Google is the next internet company in the world after Makino Technology. They will let the people think that this company's share price will reach 300 billion USD in the future.
At this time, the people will buy the shares out of an investment mentality and wait for the share price to double.
But when the investors sell the shares at this price, the share price will fall rapidly. At that time, the people who are waiting for the share price to double will realize that they were cheated.
Larry Page also knows what these people are up to, and he is getting annoyed.
It is like he is performing on stage, and someone else hypes up the performance and the tickets, and then takes away all the money.
After he performs a few shows and can finally collect the tickets, the popularity of his performance will not be as high, and the actual value of the tickets will fall. The people who bought the tickets at a high price might scold him. What the hell? I bought the tickets for 300 USD, and you are selling them for 50 USD?
Some small companies can get listed because of the investors, and they are inextricably linked to the investors. That's why they are willing to cooperate with the investors and let the investors make money from the retail investors first.
But for big companies, if they let the investors swallow the retail investors first, it will have a negative impact on the company's image.
Li Mu had lived more than 10 years than Larry Page, and he is experienced. He had seen many "monster stocks" in the US IPO market.
For example, the IPO's value increased by 250% or even 300% on the first day. That's why he had seen many interesting CEOs who were not happy when the share price skyrocketed. Instead, they warned the investors and shareholders that their own shares are not worth that much, and they should buy them cautiously.
This is not the first time something like this happened in Nasdaq.
During an IPO, the shareholders are not allowed to sell their shares. No matter how high the share price rises, they cannot sell their shares. Also, if the share price rises too high and falls, the company's reputation will be affected.
Take Google for example. The share price had risen to 248 USD today, and if it falls to 160 USD tomorrow, many people who bought the shares today will suffer heavy losses.
At that time, the shareholders will vent their anger on Google.
But Google is also suffering losses, and it did not make any money. Before it got listed, it had sold 50 million shares at 80 USD per share to the underwriters, and the underwriters sold the shares to their customers.
Now, the share price had risen to 248 USD, and it has nothing to do with Google.
The reason why the market is celebrating now is because of Google's recognition, and it is also because someone is borrowing their shares and market information to rob another group of people.
Li Mu reminded Larry Page. "When the reporters interview later, remember to remind them that Google's share price is not worth such a high price. Ask them to be rational."
Larpec was taken aback and blurted out, "You've offended the capitalists?"
Li Mu asked him, "Scared?"
Larry Page replied awkwardly, "Not really. I just think … it might not be appropriate …"
Li Mu said, "If the US media reports about Google's share price skyrocketing today, the market will be more confident, and the share price will soar even higher tomorrow. What will you do then? Looking at Google's current business scale and income, the market value is 130 billion USD, and the P/E ratio is a few hundred times. It will be weird if the share price does not fall. "
Larry Page thought for a while and begged, "Li Zong, why don't you say it? The shareholders will believe you more! "
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