Doctor of Economics Jay Ritter called Yandex an example of a technology organization that took a risk and got it all

Economics Ph.D. Jay Ritter called Yandex an example of a technology organization that took a risk and got it all.

Ritter noted that some segments of the technology sector have a winner-take-all mentality due to enormous economies of scale.

The expert emphasized that in highly competitive industries such as the restaurant business, it is difficult to achieve high profits, while in some areas large investments can lead to significant profits in the future.

WASHINGTON, September 23 - RIA Novosti. Russian Yandex has become an example of a technology organization that took a risk and got it all, Jay Ritter, Doctor of Economics, Head of the Department of Finance at the University of Florida Business School, told RIA Novosti on the company’s anniversary.

“Some segments of the technology sector have a winner-take-all mentality driven by enormous economies of scale. Nvidia and Yandex are examples,” Ritter said.

He noted that the technology industry is different from other areas of business. “In highly competitive industries like the restaurant business, achieving high profits is difficult. If a restaurant is losing money now, there is little hope for significant profits in the future to cover the losses,” the expert said.

But in some areas, large investments can lead to significant returns in the future, so investors are willing to spend on developing projects and new areas of activity, Ritter said.

On September 23, 1997, the search engine yandex.ru was announced at the Softool exhibition. The company's initial public offering on the NASDAQ exchange took place on May 24, 2011; on the first day of trading, shares rose in price by 55%.