Wednesday, March 7, 2018

Dot.com to Dot.Bomb

     Nearing the end of our quarter, before I sat down to write this blog post I took a couple minutes to reflect on this quarter and particular this class. The topic that I will be discussing today is the .com bubble, but what does me reflecting on class have to do with this? Well ever since the first or maybe the second day of class my professor brought up the subject, but never actually told us much about it. Only until now we actually got to discuss what this bubble actual was. Essentially the .com started around 1997 peaked in 2000 and burst in 2002. At this time investors were investing in internet companies left and right because of their excitement of the internet, they weren't focused much if they were profitable or not. Prices went up five times their normal amount from 1997 to 2000, but then ended up dropping to their original amount from 2000 to 2002. Only about 1 out of 2 internet companies actually ended up surviving. For example pets.com ended up not being worth anything after 2002, but companies like amazon for example, which people had failing miserably rose in worth. From what we learned in class there were 5 stages to the .com bust.

Stage 1 - The innocent beginning

Stage 2 - Boom

Stage 3 - Insanity

Stage 4 - Bust

Stage 5 - The crawl back to sanity

     So stage 1 was when the first early big companies came to investors, companies like Prodigy, Delphi, AOL, and Genie. Stage 2 was when more big companies came such as Amazon and Yahoo. Stage 3 was a point where a tremendous amount of companies were getting funded and going public, however like described above, investors weren't making money from these investments, at least not nearly enough. Stage 4 these investors started to pull out, because they realized they were losing money and they weren't getting anything out of these investments. Of course at the end the market settled and a lot of companies came to be what they are today. This was .com bust in a nutshell

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