Dot com bubble
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The dot-com bubble occurred from roughly 1997-2000 as stock prices for internet-based companies rose rapidly based on expectations of future growth, even though many companies lacked real business plans or revenue models. Venture capitalists invested heavily in these dot-com startups, driving stock prices up further. By early 2000, many dot-com stocks were overvalued, and the bubble burst in March 2000 as the NASDAQ plunged. In the aftermath, trillions of dollars were lost as many dot-com companies were forced to declare bankruptcy without having turned a profit.
![Reference
[1] http://en.wikipedia.org/wiki/Dot-com_bubble
[2] http://en.wikipedia.
org/wiki/Economic_bubble](https://image.slidesharecdn.com/dot-combubble-130124044802-phpapp01/85/Dot-com-bubble-9-320.jpg)
Dot com bubble
- 2. 1. What is "Dot-com Bubble"? ● "Dot-com" or ".com": Refer to Internet-based companies. ● "economic bubble" : A trade in products or assets with inflated value. ● Dot-com bubble: ○ A economic bubble occurring roughly 1997-2000 ○ Cause: The expectation on dot-com companies increased, making the stock price on Internet sector rise rapidly.
- 3. Context ● The explosive of Internet on the 1990s years ○ The advent of the World Wide Web(www) ○ The appearance of Mosaic web browser in 1993 -> Venture capitalist invested on the Internet companies. -> The stock of these company is increased unusual.
- 4. Movement: Bubble growth ● Dot-com companies decide to moved faster when it see the growth in their stock price. ● Provided products, services freely. ● The common motto of their companies: "Get big fast"
- 5. Soaring stock ● Stock market bubble: a self-perpetuating rise in the prices of stocks of a particular industry -It is mainly caused by speculators -> many companies became grossly overvalued.
- 6. Free spending ● dot-com theory: A Internet company survived base on the number of customer they had. ● The advent of "New Silicon Valley" became popular. ● Too much money was spent for developing new technologies like 3G in Europe -> Lead almost dot-com companies to huge debt
- 7. Bubble burst ● Friday, March 10, 2000 NASDAQ peaks at 5048.62. ● April 4, fell from 4283 points to 3689 points ● March 20, 2000 : NASDAQ lost 10 percents from each peak ● By 2001, the bubble is deflating at full speed.
- 8. Aftermath ● There are many communication companies were forced to file for bankruptcy: ○ Worldcom, NorthPoint Communication ○ Global Crossing, XO Communication ● $5 trillion is lost in the stock market crash of 200-2002 ● Computer-related program in the university drop in the early 2000s years.