Web 2 0.pdfVIP

The State of the Internet, Part 3 The World’s Information is Getting Organized + Monetized web 2.0 – 11/8/06 mary.meeker@ / david.joseph@ Morgan Stanley does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Customers of Morgan Stanley in the United States can receive independent, third-party research on the company or companies covered in this report, at no cost to them, where such research is available. Customers can access this independent research at /equityresearch or can call 800-624-2063 to request a copy of this research. For our latest industry research, please visit /techresearch For analyst certification and other important disclosures, refer to the Disclosure Section Market Value of Top 5 Global Internet Market Leaders = 46% Higher than 3/00 Market Peak Thanks to Google Google + Yahoo! + eBay + Yahoo! Japan + A • $ 2B = market value – pre-2000 IPO • $178B = market value – Nasdaq peak – 3/10/00 • $ 32B = market value – Nasdaq trough – 10/9/02 • $259B = market value – 11/7/06 Source: FactSet and Morgan Stanley Research. 2 It’s Tough to Succeed • In public markets, ~2% of technology companies have created ~100% of net wealth • On average, 2 technology ‘ten-baggers’ (stocks that rise 1,000%) go public each year Source: Morgan Stanley Technology IPO Yearb