The dot com bubble in california

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The dot com bubble in california

  1. 1. The DotCom Bubble in California s1180036 Taisuke Honda
  2. 2. Outline ● Introduction ● What DotCom Bubble? ● Happening ● Suffering ● Nasdaq Composite ● Impact ● Summary ● References
  3. 3. Introduction ● The DotCom Bubble happened at the end of the 1990s. ● It is the unusual popularity of the DotCom companies. ● Many of the DotCom companies were located in California.
  4. 4. What DotCom Bubble? ● The DotCom Bubble is investment in stocks of the DotCom companies which happened at the end of the 1990s. ● That is the speculative investment. ● From 1996 to 2000, the NASDAQ stock index exploded from 600 to 5,000 points. ● As a result, those investment is called the DotCom bubble.
  5. 5. Happening ● The Internet user began to increase in number greatly from the mid-1990s. They were seen by companies as potential consumers. ● Immediately, businesses saw the internet as a significant profit opportunity. ● The retailer Amazon.com became the first online book retailer in 1994. EBay was started in 1995 as an online auction site. ● As the internet became increasingly commercialized, many online businesses and their founders became rich.
  6. 6. Suffering ● At the peak of the DotCom bubble in 1999, it was said that a new DotCom millionaire was created every 60 seconds in Silicon Valley. ● By early 2000, reality began to fall. ● Investors soon realized that the DotCom dream had devolved into a classic speculative bubble. ● Within months, the NASDAQ stock index crashed from 5,000 to 2,000.
  7. 7. Nasdaq Composite
  8. 8. Impact ● The NASDAQ further plunged to 800 by 2002. ● The price of the stock of Microstrategy fell into 4 dollars from 3500 dollars per share. ● In 2001, the U.S. economy experienced the DotCom bubble recession. ● Many people lost a significant portion of their savings, if they had invested in tech stocks.
  9. 9. Summary ● The DotCom bubble was the historic speculative bubble. ● The bubble started in the end of the 1990s, and burst in 2000. ● Many IT-related venture business called "DotCom companies" was established in that period. ● There are some companies which survived till the present.
  10. 10. References ● The Dot-Com Bubble http://www.thebubblebubble.com/dot-com-bubble/ ● Dot-Com Bubble http://worldhistoryproject.org/topics/dot-com-bubble ● What was the Dot-Com Bubble? http://www.wisegeek.org/what-was-the-dot-com-bubble. htm#didyouknowout ● Wikipedia: the Dot-com Bubble http://en.wikipedia.org/wiki/Dot-com_bubble

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