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Chapter 560 A Plan to Turn the Tide

"Everyone says the internet has hit a bottleneck, and the space for innovation in existing internet business models is almost exhausted. So where does your theory that the Nasdaq will continue to surge come from? Is it because of the increase in internet users?"

This was their trap. Ernst knew that as long as he said that Nasdaq would continue to grow, they would definitely ask this question.

This is also a highly debated issue: without new application scenarios and new internet users, can the Nasdaq really sustain its soaring growth?

"This is indeed a core issue that is currently being hotly debated in the capital market and industry." Ernst spoke slowly, his voice steady and powerful, instantly suppressing the noise in the hall.

"Many outside observers believe that without the expansion of new application scenarios and the continuous influx of new users, the growth of the Nasdaq Internet sector will be difficult to sustain."

"The expansion of the global internet user base has indeed provided the core driving force for the growth of the internet industry in the past two years, and I do not deny the importance of the growth rate of the global internet user base to the development of the internet."

He looked at the crowd below the stage and asked, "What were the industry's predictions for the growth of global internet users at the end of last year? I remember Goldman Sachs' prediction was the highest, reaching 5800 million."

"But what is the actual result?" Ernst asked, then answered himself, "The number of internet users worldwide has now exceeded 1.4 million, and it is very likely to exceed 1.5 million this year, an increase of nearly 100%."

"What growth rate have various institutions, such as Cmpter Institute and Almanac, reported this year? Only 50%."

"In other words, the number of new internet users next year will exceed 7000 million, which is roughly the same as this year's number."

"I really don't understand, do those experts and professors who say that the growth rate of Internet users has dropped significantly have any brains? Don't they calculate the number of people and pay attention to the base number?" Many people in the audience laughed, but it quickly turned into exclamations.

"Ernst Asset Management also has a data forecast on the number of new internet users next year, which I can share with you today."

"Their prediction is that the number of new Internet users will increase by more than 75% next year, which means that at least 100 million new Internet users will be added next year."

After the gasps from the audience subsided, the host interjected, "Regardless of whether Ernst Asset Management's predictions are true or false, there is one issue that cannot be denied."

"That is, as more and more companies flock to the Internet sector, market competition will become increasingly fierce, and the number of players dividing the pie will surge, which will undoubtedly dilute the growth space of individual companies."

She stared at Ens like a villain, saying, "More importantly, the number of internet users worldwide will eventually reach its limit; this is an inevitable law of the demographic dividend."

"The number of internet startups has increased by 110% this year, and the profit margins of listed companies will be increasingly squeezed by startups."

It is this theory that leads some people to believe that Nasdaq has reached its peak, and that further growth will not be enough to cover the bubble, ultimately leading to its collapse and the loss of life.

In traditional industries, this translates to overcapacity.

"Leaving aside when the growth rate of internet users will peak, why does everyone feel that the current internet model has encountered a bottleneck?"

Ernst shook his head. "In my opinion, there are still a lot of high-quality projects and new tracks to be explored in the Internet field. It's just that those foolish people who are pessimistic can't see it."

"Of course, if they could see it, they wouldn't just talk the talk." His sarcasm drew laughter again, but the host didn't pay attention. Instead, his eyes lit up, and he blurted out, "For example?"

Her question echoed everyone's thoughts, and all the attendees' eyes turned to Ernst, their gazes filled with anticipation and curiosity.

In an era where internet innovation seems to have stagnated, everyone is eager to find the next wealth-generating secret that can lead the industry forward and create enormous wealth.

However, they only hoped that such a profitable business secret would not be easily revealed.

Ernst did say it, a slight smile playing on his lips, but he quickly suppressed it.

Since the other party had set this trap, he decided to play along and give Jennifer Linley a push.

Ernst slowly raised his hand, his gaze sweeping across the audience below, pointing to Jennifer Linley's location. "For example, the live streaming industry."

"You may not know this, but backstage before the summit started, I reached a preliminary investment agreement with Ms. Lin Li. I will inject a huge amount of money into the live streaming company she founded to help its business development."

One sentence, like a thunderclap from a clear sky, instantly caused a huge uproar in the meeting room.

All eyes that had been focused on Ernst instantly turned to Jennifer Linley.

They wanted to know what it was about this woman that Ernst saw in her that made him invest in her.

Does the live streaming industry really have a future? Not only those in the audience, but also those on stage share this view.

Bill Gates was concerned but pretended to be deep; he wanted to know more specifics and see if Microsoft had any chance of getting a piece of the pie.

John Chambers, on the other hand, was interested but didn't want to ask. Cisco made internet hardware, and he would certainly be happier as the internet developed, but he wasn't as impatient as others.

As for the big-eyed female host, she directly acted as everyone's spokesperson, bluntly stating, "Mr. Garfield, I happen to follow Ms. Jennifer Linley's live streaming website."

"But frankly, I don't think this is a promising track. You might linger for a moment at first because of its novelty, but it will become boring after watching for a while."

"I think most users probably feel the same way I do, right?"

Ernst shook his head and teased, "I was talking about the live stream, you're talking about Ms. Linley's live stream."

"Is there a difference between the two?" The other person paused for a moment, then asked with a puzzled look on their face.

"Of course there's a difference." Ernst nodded, his tone confident. "Ms. Linli's current live streams mainly focus on sharing her daily life, so why can't there be other forms of live streaming?"

His gaze swept across the room, and his voice gradually rose, "For example, could professionals who are proficient in repairing various home appliances open live streaming accounts to teach users how to repair various tools and home appliances through live demonstrations?"

"For example, could seasoned professionals who have been deeply involved in a particular industry for many years use live streaming to reveal the industry's unspoken rules and professional knowledge to users?"

"Besides that, there are game live streams, talent show live streams, real-time news broadcasts, interactive entertainment live streams, science popularization explanations, and so on... Every industry has content worth presenting through live streaming." "When users discover that they can find solutions to all the problems they encounter in life by watching live streams, and that all their spiritual needs, whether for entertainment, learning, or socializing, can be met through live streaming, will you still find watching live streams boring?"

The previously noisy hall fell into a deathly silence after Ernst's words. Everyone was stunned by this revolutionary idea and fell into deep thought.

The female host's eyes gleamed with a strange light. Ernst felt that if he thrust his hips forward now, she might come over and undo his belt.

The other attendees present had only one thought in their minds at that moment.

Get up and look at God.

Say nothing, ask nothing.

Kneel down.

Just worship them.

There were few fools present. Those who attended this summit were all elites from the internet industry and capital markets, possessing keen business acumen.

Ernst's words made them instantly realize the enormous potential of the live streaming industry.

This is not just an ordinary niche market, but a massive industrial cluster capable of unlocking a trillion-dollar market.

It will drive the development of multiple related industries such as content creation, technology research and development, hardware equipment, and Google marketing, creating massive amounts of jobs and economic benefits. Its influence may even surpass that of e-commerce. In the first row, Larry Ellison frowned, looking at his friend beside him, his tone filled with confusion, "Why did he even bother to announce this idea? Wouldn't it be better to wait until the industry layout is complete, and we've secured market dominance before letting others catch up?"

In Larry's view, the live streaming industry described by Ernst has a market size and development potential that is in no way inferior to any other internet sector at present.

Shouldn't such a strategically valuable sector be approached in the same way we did with flash sales, catching everyone off guard, quickly seizing market share, and building a solid competitive barrier?

Jobs sat to the side, his fingers gently stroking his chin, looking thoughtful.

He was certain that Ernst had his own agenda.

This is an absolute contradiction.

He would go to great lengths for his friends and give them everything he has.

For example, he strongly supported Apple's board of directors back then, completely disregarding the investment costs.

He can also be generous to his subordinates, giving them full trust and support.

This is common knowledge in the industry; otherwise, why would so many talented people be willing to work for Ernst?

At the same time, he is also a typical person who will not get up early for nothing and is always pursuing the maximization of profits.

Jobs firmly believed that Ernst could not possibly be so kind as to share this business idea. There must be some unknown motive behind his actions.

"You think you have too much money? You're crazy not to take this opportunity to build a moat first."

Larry Ellison's words caught Jobs' eye.

moat.

technology.

"I see."

Seeing Larry Ellison looking at him, Jobs explained, "Ernst's description is too wonderful, but everyone is ignoring one problem: with the current level of technology, it's simply impossible to achieve what he's talking about."

"Live stream?" Jobs chuckled. "The kind of live stream Jennifer Linley does is just a delayed replay."

"So?" Larry asked.

"So he's fishing," Jobs said, emphasizing each word. "He's using Jennifer Linley as bait to lure more big fish into the race."

"Based on his description of the live streaming format, which involves various industries, especially the exposure of sensitive content such as the unspoken rules and personal privacy of some industries, it will inevitably cause huge industry upheavals and legal controversies."

"Make a big fuss and get the government involved." "Whether the live streaming industry eventually breaks through legal restrictions and becomes a mainstream industry, or the law strictly regulates the live streaming industry and forms clear industry standards, Ernst will not suffer losses."

"All he needs to do is concentrate his resources on developing core technologies and be the first to realize his vision of live streaming."

Larry Ellison pondered for a moment, then shook his head and raised a new question: "But while he is developing the technology, other giants who see the potential of the live streaming industry will inevitably invest resources in developing related technologies as well."

Larry Ellison glanced at Ernst, who was speaking eloquently on stage, and asked, "What makes him so confident that he can be the first to realize this ideal live-streaming format?"

"Because he is Ernst," Jobs replied succinctly and firmly.

Larry Ellison rolled his eyes, a hint of teasing in his voice. "So you've become one of his admirers now?"

Jobs shook his head and explained, "This is based on rational judgment from the capital market."

"Because he's Ernst, investors will be more cautious about the industries he talks about. If it were you, would you invest a huge sum of money in a startup that wants to research the live streaming field?"

"How could that be?" Larry shook his head, then looked at him with a knowing expression.

"That's right." Jobs nodded and continued, "Nobody knows what the future direction of the live streaming industry is, or which way to go. They just think the answer is in Ernst's hands."

"Therefore, Jennifer Linley's live streaming company will become the only hot commodity in the eyes of the capital market. Other companies that want to enter this field and invest huge sums of money in developing core technologies will have to rely on their own funds and lack the support of the capital market."

"At least until Jennifer Linley's company took off, no one dared to easily jump in and invest in other companies." "In a sense, he directly blocked the path for others."

Jobs' tone carried a hint of admiration: "The technology research and development of the live streaming industry requires huge financial investment, and the operation of it requires even more. The construction of high-speed networks and the purchase of equipment cost several times more than other Internet companies."

"Except for a few giant companies, other companies simply cannot afford such high trial and error costs without capital support."

Larry Ellison looked at Ernst, who was shining brightly on the stage, and curled his lip, "Still as cunning as ever."

Jobs patted him on the shoulder. "Aren't you satisfied yet? What he said today is all very beneficial for Oracle."

Larry Ellison couldn't help but smile at this thought. Whether it was Ernst Asset Management's prediction of the growth rate of global internet users or the live streaming industry he mentioned, it represented a huge increase in the total market size for Oracle.