Wall Street Revaluation Mobile Internet: bubble fix or end

Highland Capital Managing director Thor: The market is now in the midst of a correction, not a bust, and it may take a long way to go before the real bubble bursts Wu Xiaopeng New York reports that the topic of bubbles has been discussed over the past six months, from Silicon Valley to Wall Street.　　U.S.-listed technology companies have raised $4.8 billion trillion in the second quarter of this year, according to Dealogic, the highest-ever quarterly financing of Technology IPOs since 2000. According to the valuations of LinkedIn, which has been listed in May, Apple's market capitalisation will reach $ trillions of trillion. Groupon, which lost 420 million dollars last year, is likely to overtake Google as the biggest tech IPO in U.S. history.　　Then again, Facebook, the unlisted company, has reached a level of hundreds of billions of dollars.　　People are reminded of the 1999-year tech IPO frenzy. But when global markets plunged into turmoil over the past two weeks, most tech companies fell in front.　　Fears of a recession in the US are intensifying, and for many entrepreneurs and investors, they cannot avoid the topic: Will this be the beginning of the end of the 2.0 technology bubble?　　IDG Capital Founding Partner Shong told our correspondent, many of the discussion bubble people are outside the circle, investors are willing to put money into these companies, "these American investors are not fools." But in February this year, Schmidt, who also served as Google's CEO, spoke of the overvaluation of Facebook, the gaming developer, and said, "There is a clear sign of bubbles." But that's what valuations are. It is believed that these companies will have huge sales in the future. "In fact, the recent wake-up call for the tech bubble has been a bullish Wall Street vendor analyst," he said.　　In particular, analysts have downgraded the shares that their companies underwrite, a situation that is rarely seen on Wall Street.　　LinkedIn is the hottest IPO in the US market this year, with two of its IPO's three main underwriters, JPMorgan Chase, Morgan Stanley and Bank of America Merrill Lynch, already downgrading the company's stock rating in the past two weeks. At the end of last month, JPMorgan downgraded the company's stock rating from the market to neutral.　　In the code of Wall Street, "neutral" means selling. JPMorgan said it still believes LinkedIn's business is good, but valuations are too high and the "risk/return" level of the unit is "more balanced at the current level". JPMorgan believes that the fair price for LinkedIn should be 85 dollars.　　LinkedIn's share price has recently fallen sharply, with the latest closing at $88 trillion. In Friday, Morgan Stanley joined JPMorgan Chase to downgrade the LinkedIn stock rating from "buy" to "hold". LinkedIn has just released strong quarterly earnings ahead of the Morgan Stanley downgrade. Morgan Stanley said such performance was "admirable", but the downward revision of the originalBecause it's just based on valuations.　　Morgan Stanley said the company's share price was 30 times times the pre-tax profit of 2014, and its shares were "excessively inflated" and there was no room to rise. If you compare LinkedIn to another company, the former is worth $8.4 billion trillion, or two-thirds of the Nexflix's $12.8 billion worth of dollars.　　But Netflix's revenues and profits will reach 7 times times that of LinkedIn next year.　　The investment bank Evercore partner company's target for LinkedIn is 70 dollars, and Evercore last week downgraded the company to a weaker market, calling it "the most expensive company we've covered".　　LinkedIn has been downgraded by investment banks and the world's stock market turmoil, which has often seen double-digit declines in the past week's trading days. Valuation logic mutations when markets are volatile, the IPO market is often the first to be affected, and it is hard for investors to trust a company that has no trading history.　　Those companies that have recently been listed, Pandora, everyone, Youku and others have already fallen below the IPO price. Thor, managing director of Highland Capital Ventures, looks at the Chinese concept stock as an example, "thunder and Shanda literature cannot be listed in the United States, but it is a bubble."　　"Thor is the second largest shareholder of Qihoo 360, with a 16% per cent stake. But he says it's not a very serious bubble, "the market's reassessment of Youku and everyone is actually a small bubble." Thor told our correspondent, the company listed in the past is based on the next year's income multiples to calculate the valuation.　　For example, when a company goes public this year, it is a valuation of the company by multiplying the expected profit margin of 2012 years by multiples.　　For companies that don't make a profit, a discount on the next year's income, multiplied by multiples, is valued. Thor says many companies in China, such as electric dealers, use multiples of sales to calculate valuations. Because of the rapid growth of sales, many of them have not been listed before the market value of more than 1 billion dollars.　　These companies tend to have big sales, but low gross margins and lower profitability. Companies listed earlier this year can also use 2012-year earnings to calculate valuations, but Thor said the recent two-week situation has mutated, "fund investors will now tell companies not to tell me about next year's forecasts and tell me how much this year is." Even as it prepares to go public early next year, the fund's valuations now look at multiples of the year.　　"Because of growth, this year's profits are certainly less than next year, with this year's earnings as an indicator that investment funds have become less valued." Thor said, "The U.S. stock market is very messy these two weeks." We have a couple of projects on hand, and the company feels the environment has changed a lot now and is willing to talk to us about a reasonable market value. There are two or three companies that want to make things bigger and their CEOs know there is a bubble.　　"Bubble fix or end?" Thor will present the market down with 20In contrast to the 00 Tech bubble bust, Youku and Renren fell by 70% from their highest prices, but still had $203 billion trillion in market capitalisation. In 2000, when the company fell, the stock price was only one or two yuan, or the market value was 100 million or 200 million dollars.　　He added that a large number of heavy industry companies in the previous bubble, such as those in the telecommunications industry, needed to have a lot of capital to invest in equipment, which would have a serious impact on the company once the market downturn. But this time, most of the internet light industry companies, the demand for funds is not big.　　When the economy is depressed, they do not need to burn money, they can rely on their own profits to avoid layoffs or closures. "But the video industry is a bit like heavy industry right now, such as Youku, which has a huge demand for capital and a bad market that has some impact on them." Groupon, a company that needs a lot of money to burn, will also have an impact.　　"Thor said. August 10, Groupon released a document showing the company's second-quarter revenue growth of 900% to 878 million U.S. dollars, much higher than the same period last year, 87.3 million U.S. dollars in revenue. But such growth has also paid a heavy price.　　Losses in the second quarter rose from $36.8 million trillion last year to $103 million trillion this year.　　The recent weakening of the economy has led to a fall in the market, which could lead to a lack of financing for companies that need large sums of money to sustain growth. But overall, Thor that the recent market decline is not necessarily a bad thing, "a period of time before cats can go to the U.S. listing, this is really dangerous." Because too many companies can go public, there will be some black sheep.　　"He thinks the market is in the middle of a correction, not a bust, and it may take a long way before the real bubble bursts." One of Silicon Valley's biggest venture capitalists, Marc Andreessen, known as the "Silicon Valley Marvel", said he had no worries, that bubbles did not exist, that technology companies were still cheap, and that the bubbles were now being debated everywhere because they were scared ten years ago. Andreessen himself invested in companies such as Facebook, Twitter, and Foursqaure. He sees MBA graduates as a very reliable contrarian indicator. In the late 1990 all MBA graduates wanted to go to Silicon Valley to start a company. "If they all go to the investment bank, there will be a financial crisis." If they all go into the tech industry, it means the bubble is starting to take shape. "So far, he hasn't seen a lot of MBAs in Silicon Valley," he said.