New York 2006

Chapter 145 Netflix
On September 2007, 9, Luo Ji was sitting in the office of an investment company, looking at the news on his computer. He felt very happy and had a smile on his face!

William Daley's information is indeed well-informed, and the speech of the President of the United States is very different from what he said!What is even more surprising is that even Federal Reserve Chairman Ben Bernanke has expressed his opinion. It seems that the subprime mortgage crisis is about to pass!
"Without political donations, how can we have these delicate financial operations? It seems that the money spent is still very worthwhile!"

Luo Ji then opened various major financial newspapers. The contents were not much different.There are generally positive voices in the market.

"This is a beautiful combination of punches. The Federal Reserve has given confidence to the market, and at the same time, the federal government has provided a safety net. When people see this, they will think that maybe the subprime mortgage crisis is about to end."

Luo Ji quickly opened his account and saw that the 8000 million U.S. dollars invested three days ago, with ten times the leverage, had now reached 1.6 million U.S. dollars!

Luo Ji beat his chest and said: "ε=(ο｀*))), alas, we should be conservative! If we invested all 2.8 million meters three days ago, wouldn't it become 5.6 million meters?"

However, this emotion soon passed. Ten times leverage was still too high and the risk was too high.

He didn't dare to gamble.With the emergence of the subprime mortgage crisis, CDS with high multiples are no longer available.If there were that kind of financial product, you could get this profit without using leverage!

With the apocalypse of Apple, it can be seen that Luo Ji didn't dare to do anything but diversified his investments. He was still relatively timid.I cannot say that I am a coward, I should say that I am prudent and have diversified investments.

Bang bang bang, there was a knock on the door, and it was the director of the company who came in.

He smiled and said: "Boss, you are so awesome? How did you know that the Federal Reserve Bank of America and the federal government were preparing to take action?"

"Don't talk nonsense!"

Luo Ji immediately became vigilant: "I saw so much bad news in the market, but the ABX index still went up. That's why I took a gamble! Those big guys on Wall Street always received the news before us. They must have been there at that time. Build a position!”

The company manager nodded and didn’t ask any more questions!He also realized that this kind of issue should not be discussed too much!

Luo Ji said: "Now that we are doing long, how high do you think the ABX index can rise?"

"The main products we are currently doing long are loan derivative securities with A, AA, and AAA ratings. The subprime mortgage crisis some time ago clearly caused panic. The value of these products is seriously underestimated! Now with the federal government and the Federal Reserve With his statement, the panic in the market has disappeared, and I feel that it can at least return to 80% of the previous level!"

"Okay, I'll leave it to you to run it!"

He can only judge the general direction, and the detailed operations must be handled by these professionals!
After the company manager finished speaking, he took out a document and handed it to Luo Ji: "Boss, here is the investigation report and investment advice on the Internet companies you want!"

"Well, let me take a look. You go and do your work first!"

The director of the company nodded, walked out of the office and closed the door!
Luo Ji took it and took a quick look at it. The Internet companies in their market were divided into seven types.Basically covers Internet companies around the world.

Internet hotel booking travel: Booking Holdings, Expedia, Ctrip

Internet search: Google, Baidu, Yandex, Naver
E-commerce: Ebay, Amazon, Alibaba
Social Media: News Corp (Myspace), Microsoft (Msn), Condé Nast (Reddit), Tencent
Portals: Yahoo, NetEase, Sohu, AOL
Internet rental services: Blockbuster Online, Netflix
Games: EA, Microsoft, Vivendi, NetEase
After Luo Ji finished reading, he couldn't help but smile.The big players in the Internet in the world are the United States and China.The other small players are Russia and other two countries in East Asia.As long as these companies were listed on Nasdaq, Luo Ji had purchased almost all of them, and they were all subdivided industries of the Internet.

But before, he just bought everything at random, and now these professionals have given a feasibility report.

"First, we must exclude portal websites. With the strong rise of search engines such as Gugou and Baidu, users are gradually staying away from portal websites. People are more inclined to directly search for what they want online. This is also the case in the industry. , in the past two years, the portal's profits have dropped significantly, the stock price has been falling continuously, and the number of user visits has gradually decreased..."

"Second, we must exclude Internet companies under traditional companies, such as News Corporation and Condé Nast. These companies are not familiar with the corporate culture of the Internet and only know how to squeeze profits desperately and ignore their competitors in the market. Secondly, these companies The market value itself is very high, and the impact of the Internet on the market value of enterprises is relatively limited. For example, News Corp.'s Myspace has only increased since its acquisition..."

"Third, it is recommended to exclude companies with too high market value, such as Microsoft and Gugou. These companies now have a market value of more than [-] billion yuan. Unless there are revolutionary things, it will be difficult to significantly increase corporate profits. For example, Microsoft, since the Internet Since the bubble, its stock price has not improved much, and corporate profits have not changed much in recent years. Although the third world is a vast market, piracy is rampant there. Unless the legal systems of these countries are improved, Microsoft can..."

"Fourth, try to choose the leading company in the subdivided industry. Because of the Matthew effect, it is difficult for the second to catch up with the first, unless the first makes a fatal mistake. For example, Myspace, although it is a social networking site First, there are all kinds of pursuers emerging..."

"Therefore, it is recommended to invest in these companies under Nasdaq. Booking Holdings, the leading Internet hotel booking and travel company, Amazon, the leading e-commerce company. Netflix, the Internet DVD rental service, these companies are in the high growth period of the industry. These companies are now It’s not expensive either, Booking Holdings has a market capitalization of US$29 billion, Netflix is ​​US$12 billion, and Amazon is US$251 billion.”

“Booking Holdings is currently conquering cities all over the world. They have just raised US$[-] million in financing and are exploring markets in Europe and the Middle East...”

Booking Holdings is also used by Luo Ji frequently. Fiona usually orders his hotels and air tickets using this software. Moreover, for tourism and hotel companies like this, it is difficult to surpass the strong ones.

Luo Ji nodded with satisfaction after reading the introductions of Amazon and Booking Holdings.

Luo Ji is strongly optimistic about Internet companies, because whether it is his Apocalypse Future MV or the scene before his death, computers and mobile phones are indispensable electronic products.The Internet has invaded people's daily lives.

He provided a general direction. These professionals can select the companies with the best growth potential from the sub-sectors. These people are worthy of being professionals. Their analysis reports are very solid. They deserve the annual salary Luo Ji gave them!
Luo Ji recalled for a moment that the stocks he bought in the past six months had indeed risen the most sharply in these two companies.The increase exceeded 60%.

Of course, the company with the strongest increase is Apple. The first purchase increased by more than 80%, and the average increase exceeded 50%.

However, Netflix, an Internet rental service company, still fell despite the general rise in Internet concept stocks.

Luo Ji usually read financial news and had a general understanding. This was because in the competition between Netflix and Blockbuster Online, Netflix adopted a "no profit, no loss" strategy to minimize profits.This company with a revenue of over one billion dollars has a net profit of less than 1000 million!
Luo Ji usually doesn't use this website because he has money. If he wants to watch CDs, he usually buys them. The predecessor usually went to Blockbuster physical stores to rent them.

However, although he does not use Netflix, the DVD rental market is still quite large.Blockbuster’s market value of tens of billions is supported by its leasing business.

This is because the price of a movie disc in the United States is quite high, between 15 and 20 yuan.Most ordinary people still prefer to rent and watch, which can save a lot of money.

But Netflix was not performing well. Luo Ji didn't know why he was selected, so he took the document and started reading.

(End of this chapter)