The "dot-com bubble" (or sometimes the "I.T. bubble"[1]) was a speculative bubble An economic bubble is “trade in high volumes at prices that are considerably at variance with intrinsic values”. (Another way to describe it is: trade in products or assets with inflated values.) covering roughly 1998–2000 (with a climax on March 10, 2000 with the NASDAQ The Nasdaq Composite is a stock market index of all of the common stocks and similar securities listed on the NASDAQ stock market, meaning that it has over 3,000 components. It is highly followed in the U.S. as an indicator of the performance of stocks of technology companies and growth companies. Since both U.S. and non-U.S. companies are listed peaking at 5132.52) during which stock markets A stock market is a public market for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately in industrialized nations saw their equity value rise rapidly from growth in the more recent Internet sector The quaternary sector of the economy is an extension of the three-sector hypothesis of industry. It principally concernsrvices: information generation, information sharing, consultation, education and research and development. It is sometimes incorporated into the tertiary sector but some argue that intellectual services are distinct enough to and related fields. While the latter part was a boom and bust The term boom and bust refers to a great buildup in the price of a particular commodity or, alternately, the localized rise in an economy, often based upon the value of a single commodity, followed by a downturn as the commodity price falls due to a change in economic circumstances or the collapse of unrealistic expectations cycle, the Internet boom sometimes is meant to refer to the steady commercial growth of the Internet with the advent of the world wide web The World Wide Web, abbreviated as WWW and W3 and commonly known as The Web, is a system of interlinked hypertext documents contained on the Internet. With a web browser, one can view web pages that may contain text, images, videos, and other multimedia and navigate between them by using hyperlinks. Using concepts from earlier hypertext systems, as exemplified by the first release of the Mosaic web browser Mosaic is the web browser credited with popularizing the World Wide Web. It was also a client for earlier protocols such as FTP, Usenet, and Gopher. Its clean, easily understood user interface, reliability, Windows port and simple installation all contributed to making it the application that opened up the Web to the general public. Mosaic was in 1993 and continuing through the 1990s.
The period was marked by the founding (and, in many cases, spectacular failure) of a group of new Internet The Internet is a global system of interconnected computer networks that use the standard Internet Protocol Suite to serve billions of users worldwide. It is a network of networks that consists of millions of private and public, academic, business, and government networks of local to global scope that are linked by a broad array of electronic and-based companies commonly referred to as dot-coms A dot-com company, or simply a dot-com , is a company that does most of its business on the Internet, usually through a website that uses the popular top-level domain, ".com" (in turn derived from the word "commercial"). Companies were seeing their stock prices shoot up if they simply added an "e-" prefix Internet-related prefixes include e-, i-, cyber-, info-, techno-, and net-, that are prefixed to a wide range of existing words to form new, Internet-related flavours of existing concepts. Additionally the adjective virtual is often used in a similar manner to their name and/or a ".com The domain name com is a generic top-level domain in the Domain Name System of the Internet. Its name is derived from commercial, indicating its original intended purpose for networks of general commercial character" to the end, which one author called "prefix A prefix is an affix which is placed before the stem of a word. Particularly in the study of Semitic languages, a prefix is called a preformative, because it alters the form of the words to which it is affixed investing".[2][not in citation given]
A combination of rapidly increasing stock prices, market confidence that the companies would turn future profits, individual speculation In finance, speculation is a financial action that does not promise safety of the initial investment along with the return on the principal sum. Speculation typically involves the lending of money or the purchase of assets, equity or debt but in a manner that has not been given thorough analysis or is deemed to have low margin of safety or a in stocks, and widely available venture capital Venture capital is a type of private equity capital typically provided for early-stage, high-potential, growth companies in the interest of generating a return through an eventual realization event such as an IPO or trade sale of the company. Venture capital investments are generally made as cash in exchange for shares in the invested company. It created an environment in which many investors were willing to overlook traditional metrics such as P/E ratio The P/E ratio of a stock (also called its "P/E", "PER", "earnings multiple," or simply "multiple") is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors are in favor of confidence in technological advancements.
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Morningstar
From the heyday of Pets.com in the dot-com bubble era to the touting of 3-D TV at the Consumer Electronics Show this year. The last few weeks have featured ...
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