The penniless son of the penniless ...

Chapter 270 Zhang Junfeng's Considerations (Updated)
If there is a shortage of R&D and production funds during this process, it will inevitably slow down the rise of Apple. He does not want such a situation to happen again in this life.

"...Jobs, if possible, I think we can use some of the company's patents as collateral to some financial institutions and obtain as much loan as possible in case of emergency. Of course, in terms of time, the latest is next year. If it is delayed for too long, the situation may change..."

Zhang Junfeng's sudden suggestion made Jobs, who was just immersed in joy, a little confused. After all, in his opinion, Apple's current operating conditions are still good and there is no shortage of funds. Why take the risk of applying for a large loan from the bank?

And it will be next year at the latest. If it is delayed for too long, there will be changes? What is the situation? What changes can there be?

……

Hearing Zhang Junfeng's abrupt proposal, not only Jobs was stunned, but everyone else present, including Wu Xiuying and Mugur Hosking, was dumbfounded. Even Jobs' trusted subordinates were in a daze.

After realizing that he might have let something slip, Zhang Junfeng coughed lightly, and then he began to explain, "In recent years, with the rise of Internet technology, investment institutions have been full of infinite longing and expectations for the future development of the Internet industry. With a large amount of funds pouring into these Internet-related companies, the stock prices of these companies have skyrocketed in a very short period of time!"

"Behind these Internet companies with overly high stock prices, there is no stable profit model or actual performance support. Although they have a huge user base, they have never found an effective way to convert huge user traffic into actual income and profit in a short period of time."

“Once time has passed, these investment institutions will naturally lose patience and confidence. When they start to cash out and leave, the stock prices of these Internet companies that have been praised to the sky are likely to experience a flash crash in a very short period of time…”

……

Zhang Junfeng stopped his analysis and saw panic flash across everyone's faces. After realizing that he had said too much, he immediately adjusted his words and said with a smile, "Of course, these are just my pessimistic analysis at the moment. Perhaps these situations may not happen in reality."

"But some situations still need to be considered in advance. Otherwise, when things really happen, it will be very difficult for us to respond passively..."

Hearing Zhang Junfeng's words, Jobs nodded thoughtfully, although what Zhang Junfeng said might be a bit exaggerated. But this possibility is also possible. From what he knows, many Internet companies are more like money-making companies in a different disguise.

Some companies have no profitability at all. For example, a certain Tiger, whose market value has exceeded tens of billions, had a revenue of less than 130 million US dollars in the year before its listing, and actually lost more than 63 US dollars. It was not until the end of the year when it was listed that it made a profit of only 9 US dollars. Such "junk companies" have seen their stock prices rise steadily, and they easily reached stock prices of billions or even tens of billions of US dollars in just ten months. In the annual report, they always talk about the number of page views and the number of registered users, but only mention whether they made money or how much money they made in a few words. They fooled the investors who were fooled!
In comparison, Apple is definitely a "conscientious company"! After all, they took the money and really worked hard to develop and improve the performance of their products.

……

Just as the two sides were almost done talking and Jobs was asking his subordinates to arrange the tour later, Wu Xiuying, who had been unable to contain herself for a long time, whispered to Zhang Junfeng in Korean, "Boss, among the Internet companies you just mentioned that 'don't have a stable profit model and actual performance support', could Yahoo be one of them?"

"This is your own guess. I have never said that..." Zhang Junfeng did not give a direct answer, but replied ambiguously.

Wu Xiuying, who knew Zhang Junfeng's personality, was more certain of her guess. Of course, she also quickly thought of the Internet companies that Zhang Junfeng had recommended to "partners" such as Mato Walls and Leon John that were worth investing in. Wasn't one of them Yahoo? And she paid special attention to Yahoo when Zhang Junfeng mentioned it.

Now she has also bought a lot of Yahoo shares in her Goldman Sachs account. If Yahoo suddenly goes bankrupt, wouldn't the money she had saved up so hard be wasted?

When she thought of this, Wu Xiuying's pretty face flashed with nervousness and confusion. In her opinion, since Zhang Junfeng already knew that Internet companies like Yahoo were very likely to explode in the future, he was not afraid that the situation would deviate from his expectations. For example, if it exploded in advance, wouldn't it completely trap all of them?
But Zhang Junfeng acted so calm, which clearly showed that he was very confident. Otherwise, he would have asked them to avoid this "time bomb" that could explode at any time! And other Internet companies also have similar risks, and they might also explode...

Seeing Wu Xiuying in confusion, Zhang Junfeng showed a smug smile on his face.

In the past, the bursting of the Internet economic bubble that affected the whole world occurred. Although a large part of the reason was that these companies themselves had big problems with their profitability, it was also related to the establishment of the fixed point of the US economic cycle in 2000 and the rapid tightening of liquidity after the interest rate hike cycle reached its climax, which led to the valuation and performance of technology stocks entering a downward channel.

Especially after entering the 21st century, the growth rate of the information technology industry slowed down, and both the supply and demand sides showed a sluggish state. Especially at this time, under the strengthening of official supervision in the United States, well-known technology companies such as Enron and WorldCom frequently broke out about performance fraud, which made investors' trust in technology stocks drop to the freezing point. The fundamentals and market sentiment were double-killed. Many factors combined, and finally contributed to the gradual bursting of the Internet economic bubble.

Of course, there is always a fine line between risk and opportunity, and how to make the most correct choice depends entirely on one's temporary decision. As long as the operation is proper, you can earn a lot of benefits in this "Internet feast" accompanied by huge risks. Otherwise, you will suffer heavy losses, and it is very likely that only one tenth of the money invested will be saved!

(End of this chapter)