The Dot-Com Bubble

The dot-com bubble, also known as the dot-com boom, is the period from the late 1990s to the early 2000s when the value of Internet-related companies skyrocketed. The ensuing financial crisis was caused by excessive speculation in these companies. The vast growth of the Internet led to the rise of dot-coms and their corresponding stocks. Despite this, it was still a time to be cautious and prudent.

How to Know About The Dot-Com Bubble

com bubble

The first victims of the dot-com bubble were the investors. Many of these companies were founded by high-profile individuals. World Online and CKS Group became public companies on March 17, 2000, and were valued at EUR12 billion, the largest internet company IPO in Europe at the time. The second victim was Yahoo!, led by Timothy Koogle. The company bought several companies for billions of dollars in stock, but then shut them down after only a few years. Jim Edwards wrote an article in 2000 that summarized the early stages of the dot-com bubble.

The second victim was the telecom companies. As a result of the boom, telecoms raised $1.6 trillion on Wall Street and issued more than $600 billion in bonds. The industry continued to grow, with 80.2 million miles of fiber optic cable installed across the country. The expansion of the internet enabled it to mature, but it also created a glut of broadband, which depressed earnings and profits for dot-coms. In short, it fueled the dot-com bubble, but the consequences of its success are still being felt today.