The “Californian” Dot-com Bubble University of Aizu Writing for the Workplace – Fall 2011 Nguyen Tat Thang – s1170267
Content• “.com” bubble.• Blowing the bubble• The bubble burst• Dot-boom.
.com bubble• At the mid-1990s, the Internet burst with the advent of World Wide Web.• Big Company official web site have domain name .com. www.google.com www. or acle.c www.intel.com om www.y ahoo.c• Idea with bubble: om What is in bubble? A “relatively” big balloon. The air: sometime mean nothing
.com bubble• .com bubble: so-called Internet bubble, Information technology bubble.• “Dot-coms”: the period was marked by the founding of a group of Internet-based company. Which do their most business on Internet, through “.com website” – the top level commercial website domain name.• Silicon Valley: valley of technological Titans.
Blowing the bubble• The strategy: “GET BIG FAST”.• The companies offer their services or end products for free, expecting that they could build enough brand awareness to charge their services later.• Loss period: pay for their expense without any income.• Many stocks became dizzying height and made the initial controllers of the company wildly rich on paper.
The bubble burst• 1998-99, the low interest rate in US help company to increase the capital amount.• Over 1999-2000, the interest rate was increased 6 times.• April 4 2000, NASDAQ fell from 4283 points to 3649 and rebounded back to 4223 points.• By 2001, the bubble was deflating with full speed
Dot-Boom• Investor usually referred failed dot-com as dot- boom.• The dot-com ceased trading after burning through their venture capital. Many of them had never made ‘net’ profit.• Bankruptcy and liquidating.• The stock market crash of 2000–2002 caused the loss of $5 trillion in the market value of companies from March 2000 to October 2002.
ConclusionThe dizzying fast growth of new technology bring a lot of new chances for business and trading but besides that the overestimate of potential cause the fatal risk for the market.