At the boom's peak, promising dot-com companies were able to raise immensely in value, even before they had actually made profit or product. This led to increasing amounts of "paper millionaires." Unfortunately, without organized business models and plans to earn profits, many of the largest ".com" companies were inevitably going to fail. However, the most successful entrepreneurs were able to protect their profits by selling their shares quickly.
The stock market values peaked on March 10, 2000, crashing immediately afterward. This dot-com crash spanned from March 11, 2000, to October 9, 2002. During the crash, many of the online shopping companies and other Internet-based businesses were forced to shut down. Those who weren't completely destroyed by the crash faced major losses, like Cisco, whose stock declined by 86%. However, many of the most popular online companies today, such as eBay and Amazon, were able to recover from the crash fairly quickly.
7 comments:
I really like the graphics; they cleared up your information and added to your great organization. For example the graph allowed me to clearly see the stock market values of the Dot-Com Bubble.
Interesting Post. It's kinda bizarre how a lot of our class was born near the end of this crash.
This was an interesting post. I still find it surprising how so many people were willing to invest in companies even if they weren't turning a profit. I suppose it was the thrill of being able to invest easily through the Internet. Luckily, popular online companies were able to recover, and we are making good use of their services today.
The idea of quick and easy money enticed people enough to throw large investments without researching the risks or the likelihood of return. The idea of net worth meaning the potential and not funds was not understood and investors were fooled thinking companies were more lucrative than they were.
It's interesting that the Internet managed to crash in such a big way and yet is still so overpoweringly relevant today. You would think that such a crash would deter people from getting involved afterwards.
second unknown commenter was me
The graphics help a lot and make it really clear! I find it so weird how so many people invested in these companies that might not work and they were getting no profit
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