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The dot-com bubble (also referred to as the dot-com boom, the Internet bubble, the dot-com collapse, and the information technology bubble)<ref>James K. Galbraith and Travis Hale (2004). Income Distribution and the Information Technology Bubble. University of Texas Inequality Project Working Paper </ref> was a historic speculative bubble covering roughly 1997–2000 (with a climax on March 10, 2000, with the NASDAQ peaking at 5,132.52<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> in intraday trading before closing at 5,048.62) during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the Internet sector and related fields. While the latter part was a boom and bust cycle, the Internet boom is sometimes meant to refer to the steady commercial growth of the Internet with the advent of the World Wide Web, as exemplified by the first release of the Mosaic web browser in 1993, and continuing through the 1990s.

The period was marked by the founding (and, in many cases, spectacular failure) of several new Internet-based companies commonly referred to as dot-coms. Companies could cause their stock prices to increase by simply adding an "e-" prefix to their name or a ".com" to the end, which one author called "prefix investing."<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>

A combination of rapidly increasing stock prices, market confidence that the companies would turn future profits, individual speculation in stocks, and widely available venture capital created an environment in which many investors were willing to overlook traditional metrics, such as P/E ratio, in favor of basing confidence on technological advancements.

The collapse of the bubble took place during 1999–2001. Some companies, such as pets.com, failed completely. Others lost a large portion of their market capitalization but remained stable and profitable, e.g., Cisco, whose stock declined by 86%. Some later recovered and surpassed their dot-com-bubble peaks, e.g., eBay.com, Amazon.com whose stock went from 107 to 7 dollars per share, but a decade later exceeded 500.<ref>http://chart.finance.yahoo.com/z?s=AMZN&t=my&l=off&z=l</ref>


Dot-com bubble sections
Intro  Bubble growth  Soaring stocks  Free spending  Aftermath  List of companies significant to the bubble  See also  References  Further reading  External links  

PREVIOUS: IntroNEXT: Bubble growth
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Title::stock    Their::bubble    First::dot-com    Internet::market    Company::march    Share::price

  1. REDIRECT

The dot-com bubble (also referred to as the dot-com boom, the Internet bubble, the dot-com collapse, and the information technology bubble)<ref>James K. Galbraith and Travis Hale (2004). Income Distribution and the Information Technology Bubble. University of Texas Inequality Project Working Paper </ref> was a historic speculative bubble covering roughly 1997–2000 (with a climax on March 10, 2000, with the NASDAQ peaking at 5,132.52<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> in intraday trading before closing at 5,048.62) during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the Internet sector and related fields. While the latter part was a boom and bust cycle, the Internet boom is sometimes meant to refer to the steady commercial growth of the Internet with the advent of the World Wide Web, as exemplified by the first release of the Mosaic web browser in 1993, and continuing through the 1990s.

The period was marked by the founding (and, in many cases, spectacular failure) of several new Internet-based companies commonly referred to as dot-coms. Companies could cause their stock prices to increase by simply adding an "e-" prefix to their name or a ".com" to the end, which one author called "prefix investing."<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>

A combination of rapidly increasing stock prices, market confidence that the companies would turn future profits, individual speculation in stocks, and widely available venture capital created an environment in which many investors were willing to overlook traditional metrics, such as P/E ratio, in favor of basing confidence on technological advancements.

The collapse of the bubble took place during 1999–2001. Some companies, such as pets.com, failed completely. Others lost a large portion of their market capitalization but remained stable and profitable, e.g., Cisco, whose stock declined by 86%. Some later recovered and surpassed their dot-com-bubble peaks, e.g., eBay.com, Amazon.com whose stock went from 107 to 7 dollars per share, but a decade later exceeded 500.<ref>http://chart.finance.yahoo.com/z?s=AMZN&t=my&l=off&z=l</ref>


Dot-com bubble sections
Intro  Bubble growth  Soaring stocks  Free spending  Aftermath  List of companies significant to the bubble  See also  References  Further reading  External links  

PREVIOUS: IntroNEXT: Bubble growth
<<>>