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Chapter 680 A Feast for the Elderly in the Capital Market

April 1, 1999, is April Fool's Day.

The spring rain in Manhattan, New York, carried a chilly chill and gently fell, washing over the century-old marble walls of Wall Street, but it did nothing to dampen the crowds surging outside the Nasdaq Stock Exchange.

This building, a symbol of the pulse of global technology capital, was already packed with media reporters, financial professionals, and speculators from all over the world before dawn.

Reporters dressed in black rainproof jackets crowded together at the entrance of the exchange, their professional camera lenses all pointed at the glass revolving door that symbolized the gate to wealth.

The low temperatures of early spring, coupled with the chilly rainy season, caused their breath to condense into fine mist on the lens glass. They tirelessly wiped it with professional lens cloths, afraid of missing any historic moment.

Multiple television stations' live broadcast vans secured prime locations on the surrounding streets, their silver-white satellite antennas trembling slightly in the rain, like radars poised to fire, continuously transmitting real-time updates from the area to the world.

Eleanor Parker, the anchorwoman of CBS's "Pulse of Silicon Valley," was carefully adjusting the tie on her dark suit jacket in front of the vanity mirror, while the director's urgent and clear instructions kept coming through her earpiece: "Eleanor, there are less than twenty minutes until the official broadcast at eight o'clock. You may be working at the anchor desk all day today, so get ready."

Eleanor nodded slightly, her fingertips unconsciously stroking the microphone cable.

Everyone still vividly remembers the sensation caused when Ernst's Leap Games went public last time.

Who knows if Google's IPO will allow it to regain its former glory, or even achieve even greater success?

Not only Eleanor Parker and the entire program's producers, but also CBS, and the media across America and even the world, are on high alert today, prepared for a protracted battle.

Inside the trading hall, a huge electronic display screen occupied an entire wall, with eye-catching red text scrolling through the codes and issue prices of the newly listed stocks of the day.

GOOGL.

The offering price of $385, like a scorching red brand, stands out among the many new stocks with offering prices in the double or even single digits, both eye-catching and alluring.

Tom Hansen, a senior trader from Goldman Sachs stationed at the exchange, gently placed his coffee cup on the non-slip mat on his worktable, his eyes fixed on the offering price data on the electronic screen. Turning to his equally astonished colleague Wilson, he said in bewilderment, "I really can't understand what these IPO issuers are thinking. Have they lost their minds? Choosing to list on the same day as Google? Isn't this like setting sail in the eye of a hurricane? Are they trying to get themselves killed already?"

Today's Nasdaq is destined to be opened for Google alone.

Other stocks that want to rival Google's brilliance are like grains of rice, unable to compete with the moon's radiance.

Even if you're just a grain of rice today, you're overestimating yourself and don't know your own limitations.

"That's not entirely true," Wilson replied, a hint of opportunism in his eyes.

"If nothing unexpected happens, the Nasdaq will definitely be strongly boosted today by Google's listing, and the entire technology sector will likely see a general rise."

"Perhaps these new stocks can ride this wave and attract some of the excess funds, allowing them to get a share of the profits."

Just as Tom Hansen was about to retort, pointing out that such a hitchhiking idea was almost unrealistic in the face of a super IPO like Google, a commotion suddenly broke out at the entrance of the trading hall not far away, attracting their attention.

James Hamilton was weaving through the crowd, followed by Jason Arlington, Marissa Mayer, Larry Page, Sergey Brin, and other core Google members.

Unlike the usual suits and formal attire seen at the exchange, everyone on this team was wearing matching white T-shirts.

Wearing a T-shirt and blue jeans, with the Google logo printed on the left chest of the T-shirt, he looked casual and confident.

As they passed by, a reporter raised a recorder and asked, "Mr. Hamilton, I heard that the selection of the person to ring the Google IPO was also carefully considered?"

Hamilton did not refuse the impromptu question. He stopped and, with a gentle and composed smile on his face, replied without any airs, "The 23 people who participated in the bell-ringing ceremony this time are all employees who have been with Google since its founding."

"Strictly speaking, the 22 people are the real protagonists, while I am just a lucky participant."

When Google was founded, it had only 27 people.

Besides Wenger, who was Google's legal counsel at the time, there were also four people who left to start their own businesses. All of them were present.

Ernst did not forget the promise he made in that small courtyard: he would bring Google to the capital stage and make it one of the greatest companies.

He has now fulfilled his promise, and these people are the best witnesses and beneficiaries.

Their presence is not only a continuation of Google's entrepreneurial spirit, but also the best interpretation of Ernst's motto at Google: innovators will eventually be rewarded.

Another Reuters reporter followed up with, "Mr. Hamilton, we noticed that Google's IPO price was as high as $385, corresponding to a market capitalization of over $500 billion. Do you think Google really deserves such a valuation?"

James Hamilton's smile remained gentle, but his tone carried a newfound firmness: "Google's true value has never been defined unilaterally by us or any other organization; ultimately, it must be judged by the market."

After saying this, he nodded slightly and led Larry Page, Sergey Brin, and others toward the bell-ringing area in the center of the trading hall, leaving behind a group of reporters who were still eager for more and the continuous flashing of camera flashes.

Not only are the media enthusiastic, but Wall Street's attention is also focused on this earth-shattering IPO.

At that moment, at Goldman Sachs headquarters, John Mack, head of the investment banking division, was watching the subscription data.

The numbers on the screen were changing every second; institutional subscriptions had exceeded 120 times, and orders from retail accounts were pouring in like snowflakes.

Such overwhelming demand not only broke Nasdaq's IPO record, but also set a new record in Wall Street's century-long history.

This is indeed a rare occurrence.

"They're all fucking insane!" John Mack couldn't help but mutter under his breath, his voice filled with disbelief, shock, and barely concealed excitement. "This is an offering price of $385, not $38.5! Aren't these investors worried about the stock price falling below the offering price?"

Google stock is in high demand; even a five-year-old in America knows that.

But after all, the offering price is still a bit too high; it's a monster with a market value of over five hundred billion US dollars.

"There's no way around it, Google's press conference was just too explosive. Whether it was the financial report they released or their future development plans, they generated more buzz than Microsoft." The assistant's eyes were filled with fervor.

The reports from outside these past two days are no longer about whether Google's market value can surpass Microsoft's, but rather by how much.

Whether it's the diversity of profit models or the comparison of various data in financial reports, Google has surpassed Microsoft in every aspect.

Furthermore, the proposed AI and AR tracks are not just visions, but have already yielded some results.

Pixar's stock price also surged yesterday, jumping 13 points and marking its biggest single-day gain in nearly a year.

The assistant added, "The entire capital market's valuation expectations for Google have started to get out of control. Even the most conservative financial media and research institutions have given a target valuation of $6000 billion, while optimists see a potential of $8000 billion."

"Given such expectations, investors generally believe that getting a ticket is a guaranteed profit, so the frenzied subscription is not surprising."

John Mike shook his head. As a seasoned investment banker on Wall Street, he had experienced countless IPO projects, but he had never seen such a frenzied market reaction.

Google's IPO is no longer just a simple corporate listing; it has evolved into a carnival for the capital market and may even change investors' perception of the valuation logic of the technology industry.

Just as the two were talking, the glass door to the office was suddenly pushed open, and Henry Paulson's secretary rushed in, his face filled with barely concealed excitement, his voice trembling slightly. "Breaking news! Buffett's office just called. He said this is the craziest speculation of the century, and Berkshire Hathaway wants to get involved."

"What did you say?" John Mack turned around abruptly, his eyes filled with disbelief, almost thinking he had misheard.

Warren Buffett, the god of value investing and a stock market guru who never touches the internet, is now actually considering offering some Google stock.

If this news gets out, how high will Google's stock price rise?

"Contact Deutsche Bank and Merrill Lynch to initiate an over-allotment option, increasing the number of new shares to 3.45 million."

Over-allotment, also known as the greenshoe option.

This refers to an option granted by the issuing company to the lead underwriter, allowing the lead underwriter to oversubscribe after the IPO by no more than [amount missing].

Stocks representing 15% of the original issued number of shares.

This money is held by the underwriters. If the share price falls below the issue price, they can buy back the 15% of shares that were oversubscribed at a price lower than the market price and make a profit from the difference.

If the stock opens higher, the underwriter can ask the issuing company to issue an additional 15% of the shares at the offering price, earning an underwriting fee while expanding their client base.

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