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The DotCom Bubble in California s1170225 Naoki Okada
Topic <ul><li>Introduction </li></ul><ul><li>Background </li></ul><ul><li>Bubble growth </li></ul><ul><li>IPO Boom </li></...
Introduction <ul><li>The dot-com bubble was a speculative bubble covering roughly 1995-2000. </li></ul><ul><li>During whic...
Background <ul><li>The boom began against a backdrop of generally improving economic conditions in the U.S. in 1993 and 19...
Bubble growth  <ul><li>A canonical “dot-com” company's business model relied on harnessing network effects by effects by o...
IPO Boom <ul><li>During 1994 and early 1995, the internet had begun to enter the broad public consciousness.  </li></ul><u...
Free Spending <ul><li>According to dot-com theory, an Internet company's survival depended on expanding its customer base ...
Bubble bursts <ul><li>In the end, there were too few resources available for all of the plans formulated and funded during...
Aftermath <ul><li>The stock market crash of 2000?2002 caused the loss of $5 trillion in the market value of companies from...
Reference  http://en.wikipedia.org/wiki/Dot-com_bubble http://wiki.mises.org/wiki/Dot-com_bubble
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Transcript of "Dot comslide"

  1. 1. The DotCom Bubble in California s1170225 Naoki Okada
  2. 2. Topic <ul><li>Introduction </li></ul><ul><li>Background </li></ul><ul><li>Bubble growth </li></ul><ul><li>IPO Boom </li></ul><ul><li>Free Spending </li></ul><ul><li>Bubble bursts </li></ul><ul><li>Aftermath </li></ul>
  3. 3. Introduction <ul><li>The dot-com bubble was a speculative bubble covering roughly 1995-2000. </li></ul><ul><li>During which stock markets industrialized nations saw their equity value rise rapidly growth in the more recent Internet sector and related filed. </li></ul>
  4. 4. Background <ul><li>The boom began against a backdrop of generally improving economic conditions in the U.S. in 1993 and 1994. </li></ul><ul><li>The American economy had come out of the recession of 1990-1991 in fair shape, with some of the misallocations of the 1980s boom having been corrected. </li></ul>
  5. 5. Bubble growth <ul><li>A canonical “dot-com” company's business model relied on harnessing network effects by effects by operating at a sustained net loss to build market share. </li></ul><ul><li>During the loss period the companies relied on venture capital and especially initial public offerings of stock to pay their expenses while having having no source of income at all. </li></ul>
  6. 6. IPO Boom <ul><li>During 1994 and early 1995, the internet had begun to enter the broad public consciousness. </li></ul><ul><li>The legendary Netscape initial public offering(IPO) occurred in August of 1995. </li></ul><ul><li>The Netscape IPO served as a highly visible symbol for the potential of the Internet. </li></ul>
  7. 7. Free Spending <ul><li>According to dot-com theory, an Internet company's survival depended on expanding its customer base as rapidly as possible, even if it produced large annual losses. </li></ul><ul><li>Cities all over the United States sought to become the &quot;next Silicon Valley&quot; by building network-enabled office space to attract Internet entrepreneurs. </li></ul>
  8. 8. Bubble bursts <ul><li>In the end, there were too few resources available for all of the plans formulated and funded during the boom to succeed. </li></ul><ul><li>The Federal Reserve renewed its concern about an over-heating economy and resumed its rate increases. </li></ul><ul><li>From the March peak of 5048, the NASDAQ slid to 2471 by the end of 2000. </li></ul>
  9. 9. Aftermath <ul><li>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. </li></ul><ul><li>Nevertheless, laid-off technology experts, such as computer programmers, found a glutted job market. University degree programs for computer-related careers saw a noticeable drop in new students. </li></ul>
  10. 10. Reference http://en.wikipedia.org/wiki/Dot-com_bubble http://wiki.mises.org/wiki/Dot-com_bubble
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