IBM, Microsoft, Sun Microsystems, HP,

1
IBM, Microsoft, Sun Microsystems, HP, Apple

• Bion Porzio
• Steve Lewis
• Erin Garcia
• May 16, 2007

2
Presentation Overview

• Dot.com bubble burst of 2000
• Company information
• How each IT company has fared since
• Question for the class

3
Dot.com Bubble

• Economic bubble lasting from 1995-2001
• Value increased in Internet and technology stocks
• Rise of dot.com businesses
• Stock prices, individual speculation, venture
  capital all increased
• Companies focused on market share, investment and
  future promise not profitability
• Bubble burst- failure of dot.coms, recession

4
International Business Machines Corporation (IBM)

• Founded 1889
• Market Capital 157.36 Billion
• Share Price 105.98 (May 11, 2007)
• Last Annual Earnings 11.9 Billion
• Last Annual Revenues 91.4 Billion
• P/E 16.92
• Main Products hardware, software, consulting
  services, hosting services, infrastructure
  services
• Employees 355,766
• Since Bust Not hurt, market leader in services
  because of previous reorganization

5
IBM 10 year stock price

• http//moneycentral.msn.com/investor/charts/chartd
  l.aspx?SymbolUS3AIBM

6
Apple Inc.

• Founded 1976
• Market Capital 94.03 Billion
• Share Price 108.74 (May 11, 2007)
• Last Annual Earnings 2.4 Billion
• Last Annual Revenues 19.3 Billion
• P/E 34.41
• Main Products Computer hardware, software,
  consumer electronics
• Employees 17,787 (full-time), 2,399 (temporary)
• Since Bust Ipod and Itunes saved company, stock
  soared, needs to continue to grow

7
Apple Inc 10 year stock price

• http//moneycentral.msn.com/investor/charts/chartd
  l.aspx?SymbolAAPL

8
Hewlett Packard (HP)

• Founded January 1st, 1939
• Market Capital 121.08 Billion
• Share Price 45.24(May 12, 2007)
• Last Annual Earnings 6.5 Billion
• Last Annual Revenues 91.7 Billion
• P/E 19.4
• Main Products personal computing and other
  access devices, imaging and printing-related
  products and services, enterprise information
  technology infrastructure and multi-vendor
  customer services
• Employees over 140,000 people in 178 countries
• Since Bust PC segment is booming (pushed Dell
  out as 1 PC maker), Different from competitors
  in terms of what they offer.

9
HP 10 year stock price

• http//moneycentral.msn.com/investor/charts/chartd
  l.aspx?SymbolHPQCP0PT10

10
Microsoft

• Founded 1975
• Market capital 296 billion
• Share price 30.95
• Last annual earnings 12.6 billion
• Last annual revenue 44.28 billion
• P/E 22.32
• Main Products Microsoft Windows operating
  system, Microsoft Office suite, Microsoft
  Servers, Xbox.
• Employees 71,172
• Since Burst Grew dramatically in 1990s.
  Presence around the world allowed them to recover
  nicely from the burst. In 2001 released Windows
  XP which helped in transition to overcoming the
  bust and into the millennium.

11
Microsoft 10 year stock price

• http//moneycentral.msn.com/investor/charts/chartd
  l.aspx?SymbolMSFT

12
Sun Microsystems

• Founded 1982
• Market capital 18.2 billion
• Share Price 5.11
• Last annual earnings -157 million
• Last annual revenue 13.87 billion
• P/E NA
• Main Products UNIX Computer servers,
  workstations, storage, Java-based software and
  services.
• Employees 38,600
• Since Burst Pre-burst Dramatic growth in all
  areas. 2001 burst hit them hard. Relied heavily
  on hardware sales. Repeated layoffs and
  consolidation of manufacturing operations. Linux
  servers gained popularity because of the
  substantially lower expenses due to the
  open-source software and helped in recovery.

13
Sun Microsystems 10 year stock price

• http//moneycentral.msn.com/investor/charts/chartd
  l.aspx?SymbolUS3ASUNW

14
Future Implications

• Dotcom Bubble burst (2001)
• Resulted from public bubble funded by Wall
  Street.
• Immense initial public offerings created a
  gullible public whose money propped up companies
  that should have never been in business.
• Web 2.0 Explosion
• Resulting from a private bubble financed by
  venture capital.
• Venture capital investments are small in
  comparison.
• Current business model is build to flip start
  a small company and sell it to the highest bidder.

15
Questions

• Now that you have a better understanding of these
  particular companies
• which company listed above would youinvest in
  for the next ten years if you had 100,000 and
  left it in onecompany for a decade without
  taking it out? Why?