2. Contents
● What is the dot com bubble?
● What happened?
● Primary Factors
● How Suffer?
● What was the Impact?
● References
3. What is the dot com bubble?
During mid- to late- 1990,
● Euphoric attitude toward online commerce
● Rapidly launched Internet companies
● Misestimate caused by investor's frivolity
Led to collapse of bubble economy.
This phenomenon is called dot com bubble,
named after ".com".
4. What happened?
● Proliferation of IT businesses, especially in
the Silicon Valley.
● The American stock market rose
dramatically.
● Many people spent lavish lifestyle with dot
com bubble.
5. What happened?
● Many high profile court cases targeted tech
companies for unscrupulous business
practices.
● The NASDAQ fell rapidly.
6. Primary Factors
Misestimate of investors
● Frivolous inference
○ Increasing network nodes exponentially.
○ Applying same metric to cash flow over every
internet businesses.
● Overvalued Stocks
○ Dreaming ideas prompt the value of stock.
○ Most of them are just dreaming.
7. How suffer?
● Investors lost money.
● Companies went bankrupt.
● Associated companies with them dropped
their stocks significantly.
8. What was the impact?
● Loss of $5 trillion in the market value of
companies from March 2000 to October
2002.
● Acceleration of the stock market drop due to
the 9/11 terror.
9. Aftermath
● A few large dot com companies survived
such as
○ Amazon.com
○ eBay
● Even "small players" survived through the
destruction.
