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Chapter 303 The World's Richest Man?

In 1998, the global technology industry was swept up in an unprecedented wave of change. The impact was so strong and the pace of innovation so fast that even the most seasoned industry observers would have to rub their eyes and repeatedly confirm that this was not a movie script, but a real-life business miracle.

If we compare the internet in 1997 to a race car that has just stepped on the gas, cautiously testing the limits of the track, then the internet in 1998...

In 2000, the Internet completely switched to a frenzied mode, roaring towards its highest speed, burning away the traditional business world's established perceptions beyond recognition.

At this time, the list of the top ten companies in the S&P 500 can be described as a scene of power shifts in the business world.

The traditional giants who used to create a black market boom by monopolizing oil resources and built their department store empires by expanding the consumer market are like an old train that has been slowed down, watching helplessly as their status is forcibly taken away by a group of tech upstarts.

The speed of this transformation is so astonishing, it's like having a cheat code, it's unbelievable.

Microsoft was the first to be affected. This technology company, which only entered the S&P 500 list for the first time in 1995, surpassed the long-established king, General Electric, in less than three years.

General Electric was an industrial empire that had topped the list for five consecutive years, maintaining its stability in the business world thanks to its diversified business layout. However, Microsoft, with its monopolistic advantage in operating systems and rapid expansion of its software ecosystem, took the throne of the world's most valuable company with a valuation of over $3400 billion, leaving General Electric behind.

Following closely behind Microsoft is Intel, a chip manufacturer with a market capitalization of $1912 billion, firmly occupying the top position in the second tier, second only to the two giants, Microsoft and General Electric.

If Microsoft is the sprint champion in the market capitalization race, then Intel is the endurance champion, steadily advancing on the market capitalization list step by step by relying on continuous iteration of chip technology and deep integration with the PC industry.

Even for Intel, a company that has been developing for many years, its market value has only skyrocketed in the last ten years or so. In contrast, which of the traditional giants did it take decades or even centuries to accumulate their current assets?

Besides Microsoft and Intel, IBM and Cisco also made it onto the list, with their market capitalization growth rates being astonishing.

As a leading company in the technology industry, IBM experienced a resurgence thanks to the rise of the Internet and its advantages in enterprise-level services.

Cisco, on the other hand, relied on its technological barriers in the network equipment field to quickly seize the market during the Internet boom.

Technology stocks occupy four of the top ten spots in the US by market capitalization, demonstrating a very strong performance.

What's even more astonishing is that the speed at which these tech companies create wealth has completely overturned people's traditional understanding of wealth accumulation.

In the past, it often took decades or even centuries for a company to accumulate huge wealth.

But what about tech companies? With an innovative idea, a set of efficient code, and a popular product, they can achieve explosive growth in wealth in just a few years or a decade.

This magic of rapid wealth creation has captivated countless people, and the entire technology sector, like a lit firework, has instantly shone brightly in the capital market, attracting a flood of global capital.

Just when the tech sector was already at its hottest, a piece of news from Wall Street suddenly added fuel to the fire, sending the entire financial market into a frenzy.

Google, the internet company that has attracted everyone's attention, is familiar to everyone, after all, its products have always had the highest market share in their respective fields in the United States.

What's with this billion-dollar revenue and hundreds of billions market capitalization? When did Google start making so much money?

The first reaction of investors who heard the news was that they doubted they had heard it correctly. How could there be such outrageous news?

Just six months ago, Google was widely regarded in the industry as not having found an efficient profit model, and many analysts were still speculating when Google would be able to get rid of its losses.

Just over a month ago, Google CEO Hamilton candidly revealed in a media interview that "although Google's revenue increased significantly last year, it is still in a loss-making stage if nothing unexpected happens."

The internet is copying concepts and expectations for the future market.

Now, you suddenly tell me that Google might be turning a profit, with annual revenue of tens of billions of dollars. How can investors not be bewildered?

If Google, which is losing money, can be valued at tens of billions of dollars, then wouldn't a profitable Google be able to reach the heavens and stand shoulder to shoulder with the sun?

However, as the media gradually exposed Google's various businesses, more and more investors began to shift from skepticism to belief. Some even excitedly slammed their fists on the table, saying that Wall Street's valuation was too low, and that a market value of hundreds of billions was conservative given Google's business performance.

The first to be exposed was Google's GG business. Goldman Sachs and other institutional shareholders holding Google shares were the first to give predictions that Google's GG revenue in 1997 was about $12 billion.

The problem was that in 1998, most institutions were optimistic about this revenue stream.

Merrill Lynch was the most aggressive, giving a high expectation of $48.5 billion.

The moment this number was announced, it shocked everyone present.

Merrill Lynch's reasoning is also compelling: as Google's user base continues to grow, its ROI on Google Ads has become the highest among all internet companies, making it a magnet for investment and attracting major companies to accelerate their investment in Google Ads.

More importantly, Merrill Lynch predicted that Google Google would likely see a small price increase in 1998.

Just as everyone was marveling at the strong performance of Google's Google services, Google Messenger, which Google had just launched, gave the market an even bigger shock.

The $4.99 value-added service is projected to generate $4-5 billion in revenue for Google annually.

Although this revenue forecast is not for this year, and many institutions are giving forecasts for periods after 2001, it is still quite exaggerated.

Even disregarding other businesses, these two alone were enough for Google to generate nearly $10 billion in revenue annually around 2000.

And let's not forget that Google's other businesses are also growing rapidly.

Google's core revenue is generally summarized into four core segments: Google Games (GG), value-added services, music, and email.

These four business clusters are like four powerful engines, working together to drive Google's revenue growth.

The popularity of the iPod portable music player has exceeded everyone's expectations.

Even though it has been on the market for a month, it is still in short supply.

Although supply has gradually returned to normal in most areas, occasional stockouts still occur in major cities such as New York and Los Angeles.

According to data released by iTech, the iPod shipped 310 million units in its first month, selling so well that every unit produced was sold immediately. The production lines in the factory were running almost 24 hours a day, but still could not keep up with market demand.

Google's iTunes software, which was deeply integrated with the iPod, also took advantage of this opportunity to set sail.

Wall Street has compiled statistics showing that each iPod user spends an average of $137.4 on Google Tunes.

Based on market forecasts of 2200 million iPod units shipped throughout the year, this means that Google Tunes alone could generate $30.2 billion in revenue for Google.

Even Google Mail, which was once considered a money-losing business by everyone, has now been transformed into a promising business with a bright future.

In the email field, Yahoo's exit has become a consensus among everyone in the American tech industry.

Everyone initially thought that Microsoft would take advantage of the MSN integration to launch ICQ, an instant messaging software, and achieve a comeback in the email and social networking fields. However, Google unexpectedly slapped Microsoft in the face.

Especially in the enterprise email field, Google Mail's market share has grown explosively, and major companies are accelerating their switch to Google Mail.

After all, Gmail is not only highly stable and secure, but it can also seamlessly integrate with all office software on the market, greatly improving the office efficiency of enterprises.

It is precisely because it is compatible with all office software on the market that it has fueled the wave of replacements for Google's enterprise email.

Wall Street believes Google's approach in the office software field is correct: first unify the enterprise email market, and then gradually encroach on the office software market.

Industry reports indicate that enterprise email, along with its accompanying office software services, can contribute hundreds of millions of dollars in revenue to Google annually.

Now, everyone was in a frenzy.

This is far more than just tens of billions of dollars in revenue. Even if it exceeds 15 billion dollars, no one would find it surprising.

More importantly, internet companies are fundamentally different from traditional manufacturing companies, and their profit margins are obviously much larger.

Traditional manufacturing requires a large investment in building factories, purchasing raw materials, and hiring workers. Every cost is clearly visible, and profit margins are easily squeezed.

But what about internet companies?

Once the product is successfully developed, the subsequent replication cost is extremely low. After it is developed, it only takes one more user to use it, and there is almost no need to increase the cost much.

Google's profits from its billions in revenue are no less than those from traditional manufacturing companies with hundreds of billions in revenue.

According to media reports, even using a conservative price-to-earnings ratio, Google's market capitalization after its IPO would be far more than $200 billion, and it could even become the third-largest company in the United States by market capitalization, second only to Microsoft and General Electric.

"So, will you really become the world's richest person?"

With Google's market value forecast soaring, the media quickly found a new way to generate traffic, sparking discussions on two hot topics.

The first topic was whether Google could surpass Microsoft to become the world's most valuable company. Many tech media outlets even created comparative charts to analyze the business layout and growth potential of the two companies, and the debate was quite heated.

The second topic is a familiar one, but it remains captivating: just how much wealth does Ernst have now?

Will he surpass Bill Gates and become the new richest man in the world?

Ernst looked troubled when asked this question. "Let's talk this out. Why don't you take your hand away first?"

Seeing this, Charlize Theron leaned forward slightly, almost touching Ernst's body, her warm breath brushing against Ernst's ear. "Don't think I don't know what you're thinking."

"What am I thinking?" Ernst immediately feigned innocence, his eyes darting around as he tried to conceal his true thoughts.

"I didn't expect that would be the best," Charlize Theron scoffed.

Watching Charlize Theron's departing figure, Ernst's aggrieved expression vanished instantly, replaced by a "you just wait and see" look.

But before he could settle scores with Charlize Theron, he had another grudge to settle.

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