Chapter 371: Nasdaq breaks through the highest point

March 1, 2000.

AOL, the largest new Internet media in the new era, and Time Warner Group, the largest traditional media, have officially merged.

This merger was initiated by AOL as the main body. The total purchase price was as high as US$181 billion in the form of cash and shares.

This is the largest merger and acquisition in the history of the United States and the world!

All forms of media are integrated into the world's largest media company.

Both the media industry and the network industry are generally optimistic about this model of combining old and new media.

It is generally believed that online companies need attractive content, while traditional media needs the Internet, the most promising new media platform in the 21st century. The merger of AOL and Time Warner represents the future development direction of the media industry: channel service providers The combination with content providers means that it is possible to merge traditional and modern industries.

However...the seemingly bright future was replaced by the tortuous road of merger.

Before the announcement of the merger of the two companies in February 2000, AOL's stock price was $73 per share and Time Warner was $64.

One month later...

That is, as of March 1, Time Warner's stock price has risen to $81, while AOL's stock price has dropped to $58.

This differentiated performance has stunned many people.

"how can that be?"

"Yes, the stock market performance of the two companies is far below market expectations."

"I don't know if you have discovered it? In February, the tradable stocks of Internet stocks, technology stocks, and new media stocks were hard to find. But now? There are a lot of tradable stocks, and people who buy it. It's far lower than the performance in February."

"Why is the difference before and after, so huge?"

Many people found it unusual.

That's right, many Wall Street investment institutions are choosing to sell their stocks!

Zhu Ke is waiting for the financial reports of major listed companies to be released. In fact, the major investment banks on Wall Street are also waiting to see.

Compared with individual investors, small investment banks, Lehman Brothers, Goldman Sachs, Morgan Stanley, Bear Stearns, and Merrill Lynch, which are among the top five investment banks on Wall Street, their sources of information are very broad and they can get inside information that many people cannot know. news.

"To suffer~"

"Many of Nasnak's listed companies, their profit and loss performance is far less than their current market value."

"In other words, the amount of water injected here is too high, many times higher than the critical line~

As the five largest investment banks on Wall Street, they keenly discovered the danger of Nasdaq and began to sell a batch of stocks first. As a result, the number of outstanding shares on the market is much higher than the demand for purchase.

Gale Capital.

"Boss, did you see it?"

"AOL's share price has fallen a lot in recent days."

"Even after the merger, the world's largest media company, AOL Time Warner, has its share price hovering between $39 and $45, which is far below market expectations."

Andy Chelop played with taste.

Zhuke nodded solemnly.

Andi continued: "Perhaps the combination of the two old and new media is itself a failed case."

Hearing this, Zhu Ke's solemn expression also showed a slight smile: "You are right. I also think the merger of the two companies is the biggest failure."

you do not say.

According to Zhu Ke's foresight as a traverser, he knows how miserable the two companies will be in the future.

On March 3, 2002, AOL-Time Warner’s fiscal year report announced that there was a substantial loss of 54.2 billion U.S. dollars, setting a record for the highest quarterly loss in U.S. history;

At the end of 2002, the loss amounted to 98.7 billion U.S. dollars, equivalent to the combined GDP of Chile and Vietnam.

"Tsk tut~"

Zhuke couldn't help being speechless: "I have pried "Harry Potter" away now. It is estimated that Warner's life will be even more difficult."

In the first few years of 2000, Warner's failed M&A case was a mess from top to bottom, almost relying on "Harry Potter" to support it.

.......

Time to enter March.

AOL stock price decline;

Internet giants such as Microsoft, Cisco, Oracle, and IBM have been affected by antitrust investigations and are in danger of being split;

The five major Wall Street investment banks began to selectively sell a batch of stocks;

The number of outstanding shares on the market is much higher than in January and February;

All of the above have caused the Nasdaq stock market to fluctuate slightly after entering March. However... even if the negative reports increased, it failed to stop the Nasdaq index from rising continuously, time and time again. Refresh history.

On March 1, the Nasdaq index reached 4,810 points;

On March 2, the Nasdaq index reached 4852 points;

On March 3, the Nasdaq index reached 4879 points;

Refreshing history time and time again has made countless investors even more crazy.

"Making money," "getting a fortune," "buying Internet stocks," and so on, have become daily topics of discussion among American citizens.

but!

But on March 4th, a slight change took place.

——E-Toys (e-toys) company, announced the last quarter's financial report data.

It is a well-known online toy sales company, established in 1997, its main business is to sell various toys through its own website.

During the Internet boom in 1999, the company’s stock was listed on the Nasdaq, and its total market capitalization reached US$8 billion when it opened, which greatly exceeded the US$6 billion of the time-honored toy company R-toys. The market value shocked the entire industry.

however......

In fact, R-Toys' business performance is much higher than the former.

In 1998, the former’s sales were only a mere US$30 million, while the latter’s sales were as high as US$11.2 billion, almost 400 times that of the former. In terms of profitability, the former had a loss of US$28.6 million in 1998, while the latter had a profit of US$376 million.

The fundamental difference between the two is so great, but the stock price is showing an upside-down trend...

On this day, e-toys (e-toys), as a NASDAQ listed company, is obliged to announce the financial report data of the previous quarter to stockholders across the United States.

The turnover of the previous quarter was 10.1 million US dollars;

Did you make money?

Earn a fart!

I couldn't help making money. In the last quarter, e-Toys lost 88 million U.S. dollars, which was several times higher than the 1998 full-year loss of 28.6 million U.S. dollars.

"This, this, this... this performance is too bad!"

The poor performance of e-Toys really surprised many people.

"As far as this performance is concerned, let alone the market value of nearly 10 billion U.S. dollars, it is not even worth 100 million U.S. dollars!" An investor who bought the stock of e-Toys with a large amount of money showed despair.

Everyone has made it clear to the fact that e-Toys is going to suffer, and it will be over!

Sure enough, the stock of e-Toys Company suffered a large-scale sell-off by investment institutions and stockholders on that day.

Stock price avalanche!

On the other hand, the Nasdaq index has not been affected much.

However, as one after another companies listed on the Nasdaq announced their financial reports for the previous quarter, many people suddenly became confused.

Loss!

Loss!

Still losing money!

Even Yahoo, the top Internet portal company, has far lower earnings performance than expected, with a profit of only 14 million U.S. dollars in the last quarter.

This profit seems to be okay, but don’t forget, Yahoo!’s market value is more than $43 billion!

Its profitability is far behind its market value of $43 billion.

"The market value is too high?!"

Suddenly, this word popped up in many people's minds.

On March 9, the Nasdaq Index broke the 5,000-point mark;

On March 11, it set a record of 5048.6 points.

"Huh~"

Many people breathed a sigh of relief and laughed: "Although the performance of many listed companies is far below market expectations, the Nasdaq is still relatively strong. No, it has broken through the 5,000-point index."

However, the major investment institutions on Wall Street are not as happy as the stock investors who have dazzled their heads, but they are calling for death one by one!

"It's not good, the stock market is about to collapse!"

"Today is Friday, and the stock market will open again. We have to wait until Monday. I hope that good news will come out in these two days, otherwise...otherwise... there will be a large number of people and investment companies, and it will be over!!!"

The executives of many investment institutions ~www.wuxiaspot.com~ cold sweat.

The severity of the situation completely exceeded their expectations.

The real market value of each company should be only about 100 million U.S. dollars, but it has been hyped up by the times to have a market value of billions or tens of billions of dollars;

In just a few years, the Nasdaq Index broke the 5000-point mark in one fell swoop;

In 1999 alone, the number of Internet companies listed on NASDAQ exceeded the total number of the previous ten years.

All of this, coupled with the recent financial reports of major companies have been released one after another, and the bad information has turned Nasdaq into a huge gunpowder keg that will detonate at any time.

"I hope that when Monday, March 13th, everything goes well, otherwise... it will inevitably trigger a major event that shocked the world."

A bad premonition is like a huge dark cloud, covering the hearts of many people.

"" The second update is sent.