America's No. 1 financial conglomerate

Chapter 344 Market Value

At 3:00 PM Eastern Time, inside the Nasdaq Stock Exchange in Lower Manhattan, New York, huge electronic displays were refreshing various data several times per second.

Among the many fluctuating stock codes, LGC—the code for Leap Games—stands out.

It wasn't because its buy price was rising at an alarming rate, but because of the glaring red marker below it indicating no trades had been executed.

At this moment, with only one hour left before the stock market closes for the day, the IPO of this gaming company, which has been highly anticipated by the global capital community, is unfolding in a silent celebration in a way that no one expected.

Inside the exchange's trading hall, traders who are usually dressed in suits and hurrying around are now unusually stopping their work and crowding around the electronic screens, their eyes filled with complex emotions.

From the initial anticipation at the opening, to the anxious waiting in the morning, and then to the numbness and disorientation in the afternoon, it felt like a long marathon, yet it couldn't extinguish the passion in their hearts.

Some people crossed their arms, their brows furrowed, seemingly calculating how long this farce of zero transactions could last; others leaned against the trading table, their fingers tapping unconsciously on the surface, their eyes staring blankly at the static "no transactions" on the screen, as if admiring an abstract painting.

Several more experienced traders were talking in hushed tones, their voices a mixture of confusion and barely concealed excitement. For many, witnessing such a bizarre stock market spectacle was a once-in-a-lifetime experience.

"Who would have thought that YueDong Games stock could go this crazy?" muttered an elderly trader with gray hair and gold-rimmed glasses. He had been in the industry for over thirty years and had witnessed countless IPOs, but he had never encountered anything like this before.

"Before the IPO, everyone predicted that the stock price would soar, after all, they had two trump cards in their hands: Counter-Strike and Call of Duty. But who would have thought that it would rise to the point where there isn't even a single sell order in sight now?"

As one of the fastest-growing companies in the global gaming industry, YueDong Games has amassed tens of millions of players worldwide with its phenomenal online game, Counter-Strike. Last year alone, the game generated $9.44 million in revenue, making it a veritable money-printing machine.

Meanwhile, another blockbuster title, Call of Duty, has also seen its sales soar since its release. In addition, the newly released Texas Hold'em 1998 has also ignited the market. Yuedong Games' profitability has long been fully recognized by the market.

Therefore, during the IPO roadshow, institutional investors' subscription demand reached 80 times the issuance amount, and retail investors were scrambling to get a share. Everyone firmly believed that YueDong Games' stock would soar after listing, but no one expected that this rise would unfold in such a bizarre way.

"It would be hilarious if someone posted a market price order right now," a colleague said with a laugh.

The veteran trader rolled his eyes. "Limit orders are possible, but market orders? That's practically suicide!"

A market order, simply put, is an instruction sent to the market, telling it that regardless of the price, I will buy at 0.

Such situations only occur with stocks that have high and large trading volumes. Right now, Yuedong has no trading volume at all. Whoever dares to place a market order, someone will dare to place a sell order for $10,000 per share.

"I'm starting to wonder if we'll even see any sell orders today," the veteran trader said with a wry smile to his colleague.

"That's not bad either, at least we saw God." The colleague's words echoed everyone's sentiments.

Everyone come out quickly and see God together.

This farce of zero transactions not only made traders at the exchange uneasy, but also attracted the attention of global media.

Reporters from major financial media outlets were stationed outside the Nasdaq Stock Exchange or in their own live broadcast rooms, closely following the dynamics of Leap Games.

Inside the CNBC studio, host Kelly Evans was facing the camera, trying to maintain a professional expression, but a closer look revealed that the fatigue in her eyes was almost impossible to hide.

According to the original plan, Kelly was only responsible for reporting on Leap Games' IPO ceremony and the first transaction after the listing. The program lasted about two hours, after which she could go home and rest, and then prepare for a column program in the evening to conduct an in-depth and summary analysis of Leap Games, a high-profile company.

But who could have imagined that this dramatic scene of waiting for the deal to be completed would last from morning until afternoon?

From 8 a.m. until now, Kelly has been sitting in the studio, continuously introducing the development history of the game to the audience.

The core products and market prospects are discussed, and occasionally guests are invited to provide commentary.

At first, the guests were able to talk freely, from industry trends to company competitiveness. However, as time went on, their topics gradually became scarce. In the end, there was even an awkward scene where a guest would remain silent for ten seconds in front of the camera.

Who would have thought that almost a day had passed, and that damned YueDong Games company hadn't even closed a single deal?

Essentially, this is a game between buyers and sellers. How could those lucky retail investors who won the lottery possibly be a match for institutions? There will always be some who can't resist the temptation or withstand the pressure and will sell their shares.

But everything was so strange; the price kept rising, but no one sold anything.

As a result, Kelly has been sitting in this studio for more than 7 hours without eating or drinking anything, fearing that she might not be able to hold it in and need to go to the toilet.

Because the show's ratings were so high, everyone who heard the news was drawn to the bizarre situation at Leap Games.

According to backend data, the live broadcast about YueDong Games IP0 had a viewership more than three times higher than that of other programs broadcasting at the same time. Countless viewers stayed in front of their TVs, eager to witness the birth of the first transaction, as if they were witnessing history.

Kelly was certain that even if he needed to use the restroom, the producers would let him do it in the studio.

But now the biggest problem is that she doesn't know what to talk about anymore.

Is this game company, which developed the wildly popular games Counter-Strike and Call of Duty, about to create the quietest and most bizarre IPO in Nasdaq history? As of now, not a single transaction has been made in YueDong Games' stock, which is absolutely unprecedented in Nasdaq history.

Kelly was already trying her best to control her speaking speed in the slowest possible tone. After pausing for a long time, just as she was about to continue, a hurried shout suddenly came from backstage in the studio: "Sold! Sold!"

Kelly was taken aback at first, then suddenly turned her head to look at the big screen behind her.

On the screen, the "no transaction" status for the game finally disappeared, replaced by a line of green data—at 15:04 PM, a buy order for 100 shares was completed at a price of $162.43.

At that moment, Kelly seemed to be injected with adrenaline. Her tired eyes instantly became bright and alert, and her voice rose eight octaves: "Ladies and gentlemen! A historic moment has arrived! More than five hours after its listing, YueDong Games' stock has finally completed its first transaction! The transaction price is $162.43. Based on this price, YueDong Games' total market value has exceeded $227 billion."

She waved the manuscript excitedly, speaking so fast it was almost impossible to keep up: "YueDong Games not only created a super market value, but also broke the record for the longest trading time after the market opens for a listed company. I believe it will be difficult for anyone to break this record!"

After a pause, Kelly seemed to suddenly remember something and added to the camera, "Of course, I'm referring to companies not founded by Ernst."

Upon hearing this, viewers familiar with the Silicon Valley tech scene immediately smiled knowingly.

People thought of Google. Ernst is a wicked person, and his company is wicked too. Who knows what bizarre things might happen when Google goes public?

Meanwhile, inside the Nasdaq trading floor, a frenzy of celebration had already broken out.

When the first transaction data appeared on the electronic screen, the previously quiet hall erupted in thunderous cheers.

Traders jumped up from their seats, high-fiving and hugging each other. Some even took out champagne they had prepared beforehand and opened it on the spot to celebrate.

Although this deal had no direct impact on their own interests, everyone was filled with excitement at witnessing such a historic moment.

Even more unexpectedly, this order for 100 shares was like the key that opened Pandora's box.

Within five minutes of the first transaction, another order for 1500 shares was completed, with the transaction price slightly higher than the first one.

After that, the number of sell orders gradually increased, and transactions became more and more frequent. The data on the electronic screen was refreshed at a speed visible to the naked eye.

At 4 p.m. sharp, the Nasdaq Stock Exchange closed on time.

According to the final statistics, YueDong Games' trading volume exceeded ten million US dollars that day. Although the stock price rebounded before the close, it still closed at $168.11, a surge of 236% over the offering price, with a market value of $235.35 billion.

Almost at the same time the closing bell rang, prepared online articles were launched in the editorial departments of major media outlets around the world.

The Financial Times headline cuts straight to the heart of the matter: "Scarcity Creates Premium Myths—Analyzing Dynamic Games IP0"

"A crazy performance."

The report cited official Nasdaq data, stating that "Yuedong Games' public offering this time is only 20 million shares, accounting for about 14% of the total share capital, which is far lower than the Nasdaq IPO average of 22% free float."

"In addition, institutional investors' subscription demand reached 80 times the issuance amount, and the market was highly optimistic about the future development of YueDong Games. The combination of multiple factors ultimately led to a serious imbalance in the supply and demand of YueDong Games' stock, which in turn pushed up the stock price."

The Wall Street Journal analyzed the issue from the perspective of capital psychology, stating in its commentary, "The harder it is to obtain a bargaining chip, the more it can stimulate capital's possessiveness."

"The reason why YueDong Games' stock experienced such a bizarre zero trading volume after its listing is essentially because its scarcity aroused investors' desire for possession."

"Investors who won the lottery know that their shares are highly sought after, so they are unwilling to sell them easily; while investors who did not win the lottery want to own their shares more and more, which further drives up the stock price and creates a vicious cycle."

Reuters' report focused more on the company's fundamentals: "Counter-Strike's revenue of $9.44 million last year is the hidden fulcrum of YueDong Games' stock price."

"This is the biggest difference between online games and single-player games. The sales of a wildly popular single-player game often show a slow decline, and once the market hype dies down, revenue will drop significantly."

"Online games are completely different. As can be seen from YueDong Games' monthly revenue growth, Counter-Strike, a masterpiece that created an epic in the gaming industry, is far from reaching its peak."

"With the continuous increase in the number of internet users worldwide, a considerable number of users will become cash cows for YueDong Games. Nobody knows where the profit limit of this online game masterpiece lies."

"Perhaps we'll have to wait until a new online game emerges and breaks its dominant position, but the reality is, why can't that game, capable of breaking its dominance, be developed by YueDong Games itself?"

In addition to expressing confidence in the future development of Leap Games, Reuters also mentioned Leap Games' diversified business strategy in its report.

"This year, several studios invested in by YueDong Games will launch more new games. In addition to the already popular Call of Duty and Texas Hold'em 1998, there are many other games of different types under development. These new games will become new profit growth points for YueDong Games, a gaming giant."

"Furthermore, the in-depth development of the YueDong Games platform has opened up a new engine for the company's growth. We have reason to believe that it would not be surprising if YueDong Games' revenue doubled this year. This is why all institutions are rushing to buy its stock, and it is also the fundamental reason for YueDong Games' brilliant market value."

In an instant, reports about YueDong Games' IPO flooded the media, with various analyses and hype coming from both financial and technology media.

Some call YueDong Games' IPO a miracle in capital history, while others see it as a sign of the rise of the gaming industry. Some even predict that YueDong Games may become the first gaming company to break the $100 billion mark in market value.

Amidst this nationwide frenzy, the most excited were undoubtedly the group of people at the headquarters of Leap Games in San Jose, USA.

The employees in the office cheered and jumped for joy, and those who owned company stock were so excited that they had tears in their eyes.

The stocks they held doubled in just one day, meaning their wealth more than tripled instantly.

Someone did the math on the spot: if all 10,000 shares were exercised and purchased, the stock would be worth over $1.6 million based on the closing price, making them millionaires.

However, the one who wailed the most was also here; he was Mark, the programmer on the Call of Duty project team.

Mark was slumped in his chair, clutching his hair, his face filled with regret and frustration, muttering repeatedly, "Why? Why couldn't I have just held on a little longer?"

It turns out that the first order that shocked the world that afternoon was the one that Mark sold.

But to his utter surprise, shortly after he sold, the stock price continued to soar, eventually closing at $168.11.

What devastated him even more was that the internet was full of positive news about YueDong Games, with major institutions raising their target stock prices and some even predicting that the stock price would reach a new high tomorrow.

"I sold at an all-time low!" Mark was on the verge of tears.

What made Mark even worse was that he was also looked down upon by his colleagues.

Many employees sold their stocks today, but now everyone feels they sold at a low price, and to comfort themselves, they're blaming him for it.

If you hadn't failed to hold the line and opened a floodgate, would we have followed suit?