Dotcom bubble (2000)
The dotcom bubble was the euphoria around internet companies in the late 1990s. Anything with ".com" in its name shot up on the stock market – regardless of whether the company made a profit or not.
Absurd examples:
• Pets.com (online pet shop): $300m market value, made a $147m loss. Went bust 9 months after its IPO.
• Webvan (grocery delivery): $1.2bn market value, never profitable. Bust.
• Amazon: the share price fell from $107 to $7. It survived – and today is worth over $2 trillion.
The crash: from March 2000 the bubble burst. The Nasdaq lost 78% of its value in 2 years. Over 5 trillion dollars of market value vanished into thin air. Hundreds of thousands of IT jobs were lost.
Lesson: hype alone doesn't make a good investment. At some point, companies need real profits.
📚 Dotcom bubble (2000) understood?
Deepen your financial knowledge with 60 free learning modules and 16 calculators.
📚 To the learning paths →Das könnte dich auch interessieren