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The dot com bubble in california


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The dot com bubble in california

  1. 1. The DotCom Bubble in California s1190211 Taishi Tsukahara
  2. 2. Contents ● Dot-com Bubble ● What was the Dot-com bubble ● Bubble Growth ● Soaring stock ● Free spending ● The Bubble bursts ● Fall In ● Worldwide Influence ● Japanese Influence ● Aftermath ● References
  3. 3. Dot-com Bubble ● The Dot-com bubble was a speculative bubble covering roughly 1995-2000 duaring which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more recent Internet sector and related fields.
  4. 4. What was the Dot-com bubble ● The dot-com bubble was a stock market bubble which popped to near-devastating effect in 2001. It was powered by the rise of Internet sites and the tech industry in general, and many of these companies went under or learned some valuable lessons when the bubble finally burst. Many investors lost substantial sums of money on the dot-com bubble, helping to trigger a mild economic recession in the early 2000s.
  5. 5. Bubble Growth ● Venture capitalists saw record-setting growth as dot- com companies experienced meteoric rises in their stock prices and therefore moved faster and with less caution than usual, choosing to mitigate the risk by starting many contenders and letting the market decide which would succeed. ● This combined with a period of relative wealth, with many ordinary people with spare cash investing and day-trading, which caused a lot of many to chase the available investment opportunities.
  6. 6. Soaring stock ● The term may be used with certainty only in retrospect when share prices have since crashed. ● A bubble occurs when speculators note the fast increase in value and decide to buy in anticipation of further rises, rather than because the shares are undervalued. ● Typically many companies thus become grossly overvalued. When the bubble "bursts," the share prices fall dramatically, and many companies go out of business.
  7. 7. Free spending ● According to dot-com theory, an Internet companys survival depended on expanding its customer base as rapidly as possible, even if it produced large annual losses. ● For instance Amazon was spending on expanding customer base and alerting people to its existence Google was busy spending on creating more powerful machine capacity to serve its expanding search engine.
  8. 8. The Bubble bursts ● The bursting of the bubble may also have been related to the poor results of Internet retailers following the 1999 Christmas season. ● This was the first unequivocal and public evidence that the get-rich-quick Internet strategy was flawed for most companies. ● These retailers result were made public in March when annual and quarterly reports of public firms were released.
  9. 9. Fall In ● A lot of venture companies related. ● Google and Amazon carry through. ● September 11, 2001, United States rushed into a serious recession.
  10. 10. Worldwide Influence ● Ireland achieved this economic growth that was called “Miracle of Keruto”. ● Chinese IT has not developed, so it wasnt damaged hard.
  11. 11. Japanese Influence ● Japan rise hanging cause of United States of Bubble. ● However the bubble is not so long. ● The influence of burst of economic bubble on Japan was extremely limited.
  12. 12. Aftermath ● More in-depth analysis shows that 50% of the dot-coms companies survived through 2004. ● It is safe to assume that the assets lost from the Stock Market do not directly link to the closing of firms. ● More importantly, however, it can be concluded that even companies who were categorized as the "small players" were adequate enough to endure the destruction of the financial market during 2000-2002.
  13. 13. References ● com_bubble#Bubble_growth ● titution_and_worldwide_influence