IBM, Microsoft, Sun Microsystems, HP, Apple by Chris Fenot, Sam Hauxwell, Wade Reese The.com Boom, Bust, and Recovery

The.com Boom Internet was the way to the future Venture capitalist knew there could be huge gains from a winning investment Technology companies reinvesting money in other start up companies stock Most start up companies just wanted to be bought or go public, no long term plan

The.com Bust Some great ideas but backed by bad management Ideas without a feasibility plan were getting funded Dotcom’s weren’t making money 30 million in Super bowl advertisements Y2K scare Scandals Production Paradox

The.com Recovery Survival of the fittest Diversified companies carried on Venture capitalist invest more intelligently Total investment in computer related technology decreased

Hewlett-Packard Nasdaq: HPQ

Hewlett-Packard Rode dot com Transition from Lewis Platt to Carly Fiorina CEO’s HP’s acquisition of Compaq Overview HP is a information technology corporation HP employs 151,000 Total Revenues $ Billion Net Income $2.398 Billion Product HP specializes in the production of computer products, software development, printers, digital imaging, servers, and PC’s.

Hewlett-Packard Market Personal Computer Market Share at 14.8% Financial Highest Trade at peak dot.com boom: $68.09 Lowest Trade at the end of 2001: $14.96 Currently trading at $32.18 Future The future of HP depends on the continued success of its acquisition of Compaq and the performance of the IT sector, which HP supports

Apple Nasdaq: AAPL

Apple Rode dot com Apple Computer’s CEO Steve Jobs took a different approach towards innovating. Apple focused on the internet Overview Total Revenue $ Billion Net Income $1.335 Billion Number of employees: 14,800 Product Emphasis on two product categories: The iMac and the iPod for its hardware, and iTunes and Mac OS X for its software applications.

Apple Market Apple’s market share in the US for desktop PC’s is 2.88% and for portable PC’s is 4.99% 28% of world HDD player market (2004) Financial Highest trade at peak of dot.com boom: $37.60 Lowest trade at the end of 2001: $7.75 Currently trading at $63.38 Future The new strategy for Apple is to move into the Microsoft OS market, making their iMac’s compatible with Windows. Apple also seeks to replace its Power PC with the Intel Processor. Both are bold moves in an effort to compete for the widely accepted standard of Microsoft as well as reduce the switching costs for Window’s users to adopt the iMac.

IBM Nasdaq: IBM

IBM Rode dot com Company was highly affected with drops in share price of over $50. Concentrated on internet Overview Total Revenue of $ billion (2005) Net Income of $7.934 billion (2005) Employees: 329,001 in over 170 countries Products E-business E-server Mainframe computers Software: DB2 (information management) Rational (software development lifecycle) Lotus (collaboration) Tivoli (systems management and security) WebSphere (application as well as data integration and middleware).

IBM Market 29.8% in server market (2005) 41% in server software market (2003) Financials Dot com high at $ Dot com low at $ Currently trading at $80.02 Future IBM has more patents than any other IT company: 3,248 solely in 2004 IBM is relying on its services and especially on the e-business

Sun Microsystems Nasdaq: SUNW

Sun Microsystems Rode dot com Company was highly affected with drops in share price of over $55. Overview Total Revenue of $ billion (2005) Net Income of $.107 billion (2005) Employees: 35,000 Products Software – Java, Solaris Desktop Systems Servers Storage

Sun Microsystems Market 11.8% in server market (2003), #4 now Financials Dot com high at $ Dot com low at $7.52 Currently trading at $4.54 Future Sun donated in ,600 patents to the Open Source More emphasis on pay as you go programs

Microsoft Nasdaq: MSFT

Microsoft Rode.com Anti trust issue Stock was the highest at the end of the dot com bust Overview International Computer technology company $39.79 billion in revenues (2005) $12.25 Billion in income (2005) Product Microsoft Window Microsoft Office Xbox MSNBC

Microsoft Market 90 % of PC operating system market share 85 % office application market Financial Bubble high of $60.00 per share.com bust low of $20.70 per share Currently trading at $26.88 per share Future Continually moving into new sectors of technology Moving away from being a lager of technology

Comparison

Comparison – Key Points Companies that diversified their products rode the dot com with more ease Production Paradox – companies that invested wisely succeeded Each company fell by $25 to $50 during the bust of the

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