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+#+title: Section 11 | Lesson 64 - how an IPO works
+#+HTML_HEAD: <link rel="stylesheet" type="text/css" href="../_share/media/css/org-media-sass/categories/business.css" />
+#+OPTIONS: H:6
+
+* Links
+- [[./../mba-main.org][TOC | Business]]
+- [[https://www.udemy.com/course/an-entire-mba-in-1-courseaward-winning-business-school-prof/learn/lecture/4315046#overview][S12:L64 course video]]
+
+* notes
+** Mary Meeker – Internet Trends Report
+
+Mary Meeker, formerly a partner at Kleiner Perkins, is known for publishing the Internet Trends Report, one of the most influential annual reports on internet usage, the digital economy, and technology adoption.
+
+*** Key Facts
+- Report Name: Internet Trends Report (also known as Meeker Report)
+- Published: Annually, starting in the mid-1990s
+- Content includes:
+  - Global internet usage
+  - Mobile trends
+  - Digital advertising
+  - E-commerce
+  - Social media growth
+  - Emerging technologies such as AI, cloud computing, and voice interfaces
+- Originally released by: Kleiner Perkins
+- Later reports released by: Bond Capital (Meeker's own VC firm, after leaving Kleiner Perkins in 2018)
+
+** how to value companies without revenue
+
+- valuation for high tech companies without revenue is based on subscribers
+
+*** facebook vs instagram
+
+**** facebooks value for subscribers
+
+\begin{equation}
+\text{value per Subscriber} = \frac{\text{Facebook Market Cap}}{\text{Facebook Users (Subscribers)}}
+\end{equation}
+
+\begin{equation}
+\text{value per Subscriber} = \frac{\text{\$231,000,000,000}}{\text{1.4 billion subs}}
+\end{equation}
+
+\begin{equation}
+\text{value per Subscriber} = \text{\$165 per subscriber}
+\end{equation}
+
+**** instagram value for subscribers
+
+\begin{equation}
+\text{value per subscriber} = \frac{\text{instagram acquisition price}}{\text{instagram subs}}
+\end{equation}
+
+\begin{equation}
+\text{value per Subscriber} = \frac{\text{\$1,000,000,000}}{\text{100,000,000 subs}}
+\end{equation}
+
+\begin{equation}
+\text{value per Subscriber} = \text{\$10 per subscriber}
+\end{equation}
+
+*** whatsapp
+- facebook is mostly first world companies
+- whatsapp has penetration in third world
+- facebook messenger sucks ass
+
+**** change in growth rates
+- facebook was losing subscribers
+- whatsapp was growing
+
+**** subscriber value
+- number of subscribers :: 700,000,000
+- price bought :: 20bn
+- price / subscriber :: 28$
+
+** valuation methods depend on the industry
+*** short term drivers based on company
+| industry           | driver            |
+|--------------------+-------------------|
+| consumer tech      | subscribers       |
+| enterprise tech    | revenue           |
+| semiconducter tech | earnings          |
+| hotels             | revpar            |
+| industrials        | earnings & volume |
+| telecommnications  | arpu              |
+| retail             | earnings & SSS    |
+| biotech            | FDA approval      |
+
+**** definitions
+- revpar :: revenue per available room
+- arpu :: average revenue per users
+- sss :: same store sales
+**** notes
+- same store sales
+  - investors want to see that the individual stores grow organically
+  - e.g. mcdonalods started staying open all day, and profits skyrocketed
+
+- fda approval is necessary for biotech
+  - no approval no profit
+  - once you get it, it's printing money
+  - stocks go up or down a ton depending on approval
+
+*** long term drivers
+earnings and cash flow