Chapter 385 Baidu's listing (seeking monthly pass)

  Time came to August, and Focus Media and Baidu were listed on Nasdaq successively, which caused quite a sensation in the market.

  Especially Baidu, the stock is eagerly sought after by investors as soon as it goes public.

  On the day of listing, Baidu’s stock price closed at $122.54, a 354% increase from the issue price of $27.

  Calculated based on the closing price on the first day of listing, Baidu's market value has reached 3.958 billion U.S. dollars, making it the largest Chinese company listed on the Nasdaq.

  When it comes to the country, it is the largest Internet company with great reputation. Shanda, Sina and others all have to stand aside.

  As for Penguin, its current market value is hovering around tens of billions of Hong Kong dollars, and it is still in a fierce battle with MSN, and the outcome is unpredictable.

  The reason why Baidu’s stock is so popular is also because there is such a demon stock as Google as a reference.

   When Google went public in August last year, it had an issue price of $85 and a market value of $23 billion.

   After a year, Google’s stock price has approached US$320, and its market value has reached more than US$80 billion, which is close to the US$100 billion mark.

  In addition, Google also participated in an investment in Baidu last year, acquiring a 2.5% stake in Baidu at a price of US$5 million.

  Now that Google has announced that it is going to enter China, shareholders will soon become competitors, and this part of the stock is expected to be liquidated.

  But the stock market seems to have lost its sanity, forgetting that Baidu has another tough battle to be fought next, and blindly pursuing "China's Google", pushing Baidu's stock price to rise continuously.

  Xia Jingxing and Robin Lee had a relationship. On the day of Baidu's listing, they also sent blessings as friends and shareholders.

Most of the 4 million shares issued by Baidu’s IPO were allotted to various institutional investors by underwriters during the roadshow.

  Lixia Fund spent a lot of effort and got 100,000 shares of it.

  According to the book return, these 100,000 shares had a floating profit of nearly 10 million U.S. dollars on the first day of listing.

  However, Envision Capital’s idea of ​​buying Baidu stock through the open market basically fell through.

   Liu Hai sat in Xia Jingxing’s office, constantly complaining to the latter: “Now the market is going crazy. If you miss Google, you don’t want to miss Baidu again.

  If we enter the market at this time and buy at a price of more than one hundred dollars, I am afraid it will not be a good choice. "

   Liu Hai thought for a while, and slowly persuaded: “Or wait a minute, Google’s entry into China has entered the final countdown.

  When Google officially announces, Baidu’s stock price will definitely drop for a while.

  We will buy again at that time, and we can achieve the best cost in terms of cost. "

  Xia Jingxing nodded, “You’re right, Google has nearly 100 billion US dollars in market value, and their entry into China is definitely bad news for Baidu.

  It’s really not a good time to enter the market now. Let the market calm down first!

  In half a year, Baidu will usher in the first wave of lifting of the ban. At that time, many Baidu shareholders and early investment institutions will withdraw, and the stock price should fall. "

   Liu Hai smiled, "Yes, when most venture capital institutions come here, it is time for investors to submit a beautiful investment answer sheet. Few funds still hold equity in invested companies for a long time.

  This is determined by the duration of the fund, and it is difficult to change it.

  What's more, wait a few months or six months, when Google completely enters China, I don’t know what the Chinese search engine market will be like?

  At this time, most funds should choose to settle for security.

  Dalun, do you think Google can’t beat Baidu? Can't replicate in the Chinese market, the miracle created in other countries and regions? "

  Xia Jingxing shook his head slightly, "MSN and Penguin are currently fighting hard, and no breakthrough progress has been made;

  The competition between Amazon, Eaby, and Ari has shown a decline.

  I think that in the search field, Baidu will also be able to beat Google locally, continuing the “undefeated record” of Chinese Internet companies. "

   Liu Hai frowned and thought, the most important thing in investing is analysis and judgment.

  Analyze which company has the potential, what kind of success it has the opportunity to achieve in the future, or which company is going to die, then do more of this company’s competitors...

  Through the information that we have mastered, we will go through the layers to discover the truth and find the value of investment.

  Thinking about it carefully, he felt that what the boss said was really not wrong. At present, no American Internet company has achieved a substantive victory in the Chinese market.

  One leaf can know autumn, and by analyzing the frustration of American companies, it can also predict the outcome of Google.

   "Google's market value is almost hundreds of billions of dollars. It needs money, money, people, and technology. In the Chinese market, there is really no hope at all?"

  Looking at Xia Jingxing, Liu Hai began to talk about his doubts: “After investing in Google, I have studied them in depth. This is a technology-driven company.

  Technology is the core competitiveness of search products.

  MSN social products cannot make breakthrough progress in China. As you said before, the cost of replacing the social relationship chain is too great.

  Eaby defeated by not knowing the Chinese market and defeated by the free strategy.

  Especially after Ari’s latest round of financing landed, Ari’s last capital shortcoming was also made up.

  Baidu’s current development momentum is like cooking oil on fire, but it really matches Google.

  Especially after Google has invested its key resources in China, it is not certain who will be the winner. "

  "Technology and business models know no borders, but Internet companies have borders. Just like I quit Facebook, Google is in China..."

  Xia Jing went to the end, looked at the bangs, smiled and said, "Taste it yourself."

   Liu Hai frowned, "You mean administrative intervention?"

   "Intervention will definitely be there, but more have to return to conventional issues, such as localization, technology, products, first-mover advantage, etc."

  Xia Jingxing thought about it. In the past, Baidu had always firmly controlled 60%-70% of the market share, while Google had only 30% of the market share, and its share is still declining, and it may be overwhelmed by Baidu at any time.

  The core reason for its withdrawal is that it does not respect the laws of the local market, and is determined to deal with it.

  A commercial company is not ashamed to bend down to make money, but if it is unwilling to deal with even one gesture, the iron fist of socialism will not be used to anyone.

  Although many netizens in previous lives regretted Google’s withdrawal, they felt that Baidu was dominated by the whole family. They lost their enterprising spirit and could no longer get out of their comfort zone. They gradually became mediocre and even committed evil.

  This is more about Baidu’s failure to evolve itself, rather than how deep the feelings it has for Google.

   Liu Hai thinks about Xia Jingxing’s words carefully, and thinks it makes sense.

  Russia’s Internet market is a lesson from the past. It is difficult for American companies to enter, and there are a lot of constraints on entering.

  Although China currently allows American Internet companies to come in and operate, it is not a pro-son after all, and the country and the Americans have never dealt with it.

  For multiple reasons, it is really possible for Google to repeat the mistakes of Yahoo and eaby.

   "Well, I understand, I will continue to follow up and research."

   Liu Hai did not ask any more, and chatted with Xia Jingxing about Focus Media.

  This company is not as popular as Baidu. During the roadshow placement, Lixia Fund got a lot of shares.

  After listing, Lixia Fund has also continued to buy from the secondary market. Now it already holds 30 million U.S. dollars worth of stocks and ranks among the top ten institutional shareholders of Focus Media.

  Xia Jingxing knows that Focus Media has two years of good life, and there is not much instruction, just let Liu Hai hold it firmly.

  (End of this chapter)