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2. IInnttrroodduuccttiioonn
The bubble was experienced in the United States and
other developed countries after the discovery of the
World Wide Web
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3. The History
Internet companies were opened and offered to
public.
Investors expected so much leading to over valuation
of shares.
Most companies collapsed as this was unsustainable.
Companies bearing the letters dot com had their
shares bought at high values.
Investors relied on instinct instead of critical analysis.
In 2000 most companies went under while others
reported significant drops in their share prices.
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4. Example of Companies tthhaatt wweerree AAffffeecctteedd
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Amazon.com
Craig list
Geocities
Yahoo
EBay
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5. Examples ooff CCoommppaanniieess tthhaatt CCoollllaappsseedd
Etoy
Boo.comFlloz.com
Pets.com
 Kibu.com
Webvan
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6. CCoonncclluussiioonn
Companies that did not collapse had to restructure.
Main challenge was credited to failure to invest based on
companies’ financial books.
Companies should have developed concrete plans to
withstand the bubble burst.
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