Question
The Internet started out as an American military project in the 1950s60 s and has evolved into a modern mainstream phenomenon. It is used by
The Internet started out as an American military project in the 1950s60 s and has evolved into a modern mainstream phenomenon. It is used by common businesses for marketing and sales, for searching and sharing of files (including documents, audio and video files) by businesses and households, and it is even used to facilitate online communities with forums and blogging with popular websites such as Facebook, Twitter, and Youtube. The Internet has revolutionized the computer and communications world like nothing before. The Internet is at once a worldwide broadcasting capability, a mechanism for information dissemination, and a medium for collaboration and interaction between individuals and their computers without regard for geographic location. The Internet represents one of the most successful examples of the benefits of sustained investment and commitment to research and development of information infrastructure. Beginning with the early research in packet switching, the government, industry, and academia have been partners in evolving and deploying this exciting new technology. In the technology industry, one kind of company that is pretty famous is information provider companies. It may sound unfamiliar for most people. However, most people are familiar with Internet search engine companies like worldwide Google, Yahoo, Baidu, and so on. Many people probably depend on these Internet search engine companies when they use Internet to search. These Internet search engine companies are also called information provider companies, which provide different information to various customers. For instance, the famous search engine company Google can provide a tool to help customers to acquire wanted information. However, different information providers can provide different types of information (e.g., Youku, a video sharing website, can provide all types of videos information). With the development of the industry, new information provider companies 256 A. Miglo et al. like Facebook and LinkedIn can help people to establish connection and share information with others. In the information provider industry, companies provide information in different ways, but the basic concept is to provide the needed information to customers. In the Internet industry, the leader companies and the laggards have the big difference in Market Cap, long-term debt to equity, P=E, net profit margin, and other aspects. For instance, the leader companies, Google, Yahoo, and Baidu, have the market cap of $272.1B, $321.9B, and $380.4B, respectively. On the contrary, some small companies like VRX Worldwide Inc., Armada Data Corp, and Alphinat Inc. have relatively small market cap of $1.0 M, $1.8 M, and $1.9 M, respectively. P=E is also very different among different companies. For instance, Facebook, which held its IPO on May 18, 2012, has a P=E of 1,805.33. Google has its P=E ratio of 25.62. Most of the big companies have high net profit margin. For instance, Google has the net profit margin of 20%, and Yahoo has the similar net profit margin of 20.23%. Compared to Google and Yahoo, Baidu has the highest net profit margin of 44.12%. Small companies have various net profit margins, and some companies have relatively high net profit margins. Atrinsic, Inc. has a market cap of $0.13 M and has a net profit margin of 36.7%. eMedia Networks also has a relatively small market cap of $0.4 M. However, it has a quite different net profit margin of 11.59 compared with Atrinsic, Inc.s 36.7%.
Analyze this paragraph with capital structure concepts, more than 250 words.
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