America's No. 1 financial conglomerate

Chapter 680 The First Victim

It's no wonder she's the future princess; her body is much more resilient than an ordinary person's. She was so exhausted yesterday that she was running all over the room, and she even slept with tear stains on her face.

When Ernst returned from his morning run, the other person had already washed up, put on makeup, and was sitting in the living room.

"So Google will become the most valuable company in the United States, and you will become the world's first billionaire with a net worth of over $100 billion?"

Ernst had just changed his shoes when Big Ivan rose like a light lark, strode over to him, and couldn't contain his excitement.

She didn't care at all that Ernst's sweat had stained her five-figure dollar custom-made suit, and naturally reached out and intimately took his arm.

Ernst remained calm, as if the other party's claims of being number one in market capitalization and having hundreds of billions of dollars in wealth had nothing to do with him. He replied indifferently, "That's determined by the market. Who can say for sure?"

Big Ivan looked up at him, his eyes gleaming with fervor. He tightened his grip on his arm, making it contort with apprehension, and tentatively asked, "So, what do you think about me starting a tech company focused on AI and AR technology research and development?"

Ernst glanced at her sideways, a knowing look flashing across his deep eyes, thinking to himself, "This is what your old man wanted you to ask, isn't it?"

Want to ride the wave of Google's rise to get a share of the tech industry and amass wealth?

"Of course, AI and AR are undoubtedly among the core technology tracks for the next few decades, and their technological prospects and commercial potential are worth looking forward to."

Ivan's face instantly lit up with a bright smile, her eyes shining even brighter. But before her joy could linger for long, Ernst abruptly changed the subject, "However, the technological development cycle in these two fields is extremely long, and the maturity of the business model requires even more time to mature. At least for the next three to five years, don't expect to see any substantial commercial returns."

"During this period, the initial research and development, talent reserves, hardware investment, and even copyright layout and other expenses may amount to tens of billions or even hundreds of billions of dollars."

The smile on her face froze instantly, her eyes gradually dimmed, and the hand that was holding Ernst's arm unconsciously loosened.

She realized that this was a game for the rich.

It's not something for rich people like her, but rather something for a very small group of people at the very top of the pyramid.

Otherwise, there simply wouldn't be enough capital to back you up, nor would there be mature industry chain resources, let alone the patience to wait for technology incubation.

Watching Ernst turn and walk upstairs to wash up, Big Ivan's gaze was complex and hard to decipher.

It was a mixture of worship, envy, and an unspeakable jealousy.

Men like this are truly captivating to women.

He downplayed the investment of tens of billions of dollars, as if it were just an ordinary expense.

Why can't I marry a man like that?

What did I do wrong? What she didn't know was that Ernst wasn't telling her the truth at all.

Three to five years?

It may be eight or ten years before we see any signs of profitability.

The purpose of releasing these two bombshells was to boost Google's market value and complete the wealth transfer during this prime time.

The current outcome aligns with his desired goals and expectations.

This morning, the entire United States was completely ignited by Google's product launch event last night.

CBS invited top Wall Street analysts to provide a live analysis, with one analyst excitedly waving his report and declaring, "This is not just a simple earnings report; it's a perfect score that Google has delivered to the capital markets."

"From its founding in August 1996 to April 1999, in less than three years, its revenue exceeded 10 billion yuan. Such a growth rate is unprecedented in business history and can be called an unrepeatable myth."

Major North American media outlets and print media, including The New York Times, Empire Magazine, Silicon Valley Magazine, and The Wall Street Journal, devoted significant space on their front pages or core sections to reporting on Google's press conference.

The Wall Street Journal's headline was particularly eye-catching: Google ignites a capital frenzy, officially beginning its path to dominance.

Wall Street was in an uproar. It was truly astounding, completely igniting investors' imaginations and enthusiasm.

First, there was the disclosure of the first-quarter financial report and market size. Although Google used core data to express this, everyone knew that this core data was already a conservative version, and the data revealed in the official financial report would only be more exaggerated.

The data revealed this time will likely make anyone working in the internet industry envious, and it's not just the internet industry, but the entire technology industry, and even all industries worldwide, jealous.

Revenue was $48.82 billion, gross profit was $41.69 billion, and net profit was $21.63 billion.

What does this mean?

A comparison will provide a more intuitive understanding.

Wall Street and the United States as a whole nowadays love to compare Google and Microsoft.

As an industry benchmark, Microsoft's market performance has always been regarded as a bellwether for technology companies.

Compared to Wall Street's forecasts for Microsoft during the same period, Google completely outperformed Microsoft in terms of revenue growth, gross margin, and net profit margin.

No one thought Microsoft could deliver earnings reports that completely exceeded Wall Street's expectations, just like Google, because Microsoft is already a mature company.

It is precisely because Microsoft is a mature company that Google's formidable power is all the more apparent.

For companies in their growth stage, revenue is a core indicator for measuring their market influence and development potential, which is a major reason why the Fortune Global 500 uses revenue as the ranking criterion. When Google released its 1998 financial report, although its net profit was much lower than Microsoft's, no one would have considered Google's earning power and profitability to be inferior to Microsoft's.

Because everyone knows that Google's business strategy is more forward-looking and is still in its growth stage.

Now Google has used this core data to completely prove itself: I can not only surpass Microsoft in profitability, but also in net profit margin.

What's even more astonishing is that Google's current profits come only from two core businesses, with only the Google Play browser business being truly monetized.

The other major business segments are still operating at a loss.

Losing money doesn't mean they haven't found a profitable business model.

Once it matures, it will become a new source of profit growth for Google.

Google's TNES revenue is counted as part of its value-added services.

However, if calculated separately, revenue exceeded $6.24 million, but net profit was a negative $0.63 million.

One reason is the huge investment in hardware, and another is that Google TNE has been continuously strengthening its music copyright portfolio.

In addition to the copyrights held by MGM Grand, Google TNES has been purchasing online music copyrights from local music companies in various countries around the world.

While copyright fees in most countries are ridiculously low, everyone knows that due to piracy, these countries consistently lose money on copyright revenue. However, everyone also knows that this isn't an endless investment, nor will it be an endless loss.

Once the hardware investment is complete, Google TNS will be able to turn a profit.

As these promising developing countries gradually develop, Google's current low-cost long-term copyright lock-in will allow Google TNE to usher in its own model of reaping huge profits as a middleman.

With its core functionality as a proprietary music management software, Google TNE's profitability is undeniable, and its future profit potential is equally limitless.

The same applies to Google TNES and Google Video.

That's what makes Google so terrifying.

In addition to revenue, Google's future development plans were also fully demonstrated at this press conference, driving the market into a frenzy.

AI and AR are definitely two core tracks in the future technology field.

Clearly, Google has once again taken the lead, accurately positioning itself in these two future tracks.

This means that Google not only dominates the current internet market, but also lays a solid foundation for its development over the next ten or even twenty years.

No one would question the potential of this internet giant, whether in terms of future growth or current commercial value.

All the discussion was about was whether Google's release price exceeded its current revenue. And for the market, yesterday's press conference only left one thing to discuss: how to participate in this IP.

Google's IPO was an absolute feast for the capital world.

The entire market has heated up.

Wall Street and investors around the world were excited.

This epic feast has entered its final 24-hour countdown, and the first victim has emerged.

March 31st, the last day of March.

Early this morning, the U.S. Securities and Exchange Commission's website crashed due to excessive load caused by the overwhelming number of people downloading and reading Google's IPO documents.

This time, not only investors, but also the media were the first to criticize, stating that this reflects a serious lag in the understanding of American technological development by relevant institutions, and a failure to keep up with the pace of social development.

The China Securities Regulatory Commission (CSRC) issued an emergency statement, immediately implemented the fix, and stated that it had added servers and upgraded the website.

At 11 a.m., the China Securities Regulatory Commission (CSRC) issued a statement saying that the website had been fixed.

However, the website crashed again after less than two hours due to the same issue.

This has drawn a lot of criticism from investors, with comments everywhere insulting the mother of the chairman of the China Securities Regulatory Commission. If these comments were to come true, his mother's fertility would be so high that she could give birth to half of America.