dot-com bubble
E509788
The dot-com bubble was a late-1990s to early-2000s speculative boom and crash in internet-related stocks, driven by excessive investment in unprofitable online companies.
Statements (61)
| Predicate | Object |
|---|---|
| instanceOf |
economic bubble
ⓘ
financial crisis ⓘ speculative bubble ⓘ stock market bubble ⓘ |
| affectedMarket |
equity markets
ⓘ
labor market for software engineers ⓘ venture capital market ⓘ |
| alsoKnownAs |
Internet bubble
NERFINISHED
ⓘ
dotcom bubble ⓘ technology bubble ⓘ |
| burstPeriod |
2000
ⓘ
2001 ⓘ 2002 ⓘ |
| causedByBelief |
assumption that internet companies could rapidly monetize traffic
ⓘ
belief that market share was more important than profitability ⓘ |
| characterizedBy |
business plans focused on growth over profits
ⓘ
heavy spending on marketing by startups ⓘ high valuations of unprofitable companies ⓘ large number of IPOs ⓘ rapid rise in technology stock prices ⓘ speculative trading by retail investors ⓘ use of metrics like page views instead of profits ⓘ |
| consequence |
collapse of many internet startups
ⓘ
increased scrutiny of technology valuations ⓘ layoffs in technology sector ⓘ losses for investors ⓘ recession in early 2000s in the United States ⓘ reduction in venture capital funding ⓘ sharp decline in technology stock prices ⓘ |
| drivenBy |
deregulation in telecommunications
ⓘ
easy access to capital ⓘ excessive optimism about online business models ⓘ low interest rates ⓘ speculation in internet stocks ⓘ venture capital investment in startups ⓘ |
| geographicScope |
United States
NERFINISHED
ⓘ
global financial markets ⓘ |
| historicalSignificance |
example of speculative mania in modern markets
ⓘ
major technology sector correction ⓘ |
| involvedIndex |
NASDAQ Composite
NERFINISHED
ⓘ
NASDAQ-100 NERFINISHED ⓘ |
| involvedInstrument |
equity financing
ⓘ
initial public offerings ⓘ stock options ⓘ |
| mainSector |
internet-related companies
ⓘ
technology stocks ⓘ telecommunications sector ⓘ |
| notableCompanyType |
.com startups
ⓘ
internet portals ⓘ online retailers ⓘ web hosting companies ⓘ |
| peakIndexLevel | NASDAQ Composite above 5000 points in March 2000 ⓘ |
| peakPeriod |
1999
ⓘ
early 2000 ⓘ |
| precededBy | 1990s economic expansion ⓘ |
| regulatoryResponse | Sarbanes–Oxley Act of 2002 NERFINISHED ⓘ |
| relatedTo |
Y2K period
ⓘ
information technology revolution ⓘ telecom bubble ⓘ |
| timePeriod |
early 2000s
ⓘ
late 1990s ⓘ |
Referenced by (1)
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