There were two primary factors that led to the burst of the Internet bubble: The Use of Metrics That Ignored Cash Flow. Many analysts focused on aspects of individual businesses that had nothing to do with how they generated revenue or their cash flow.
So how did Amazon survive the bust? History doesn't necessarily point to having the best idea or the savviest management. To a large extent, Amazon got lucky by raising a ton of money right before the market crashed, giving the company the cushion it needed to ride out the turmoil of the early 2000s.
During the dot-com bubble, computer encryption enabled the rapid expansion of e-commerce. ... When the dot-com bubble burst, investors help no one responsible for their losses.
The pre-bubble period of the Dotcom bubble went from 1995 to 1997, the actual bubble took place from 1998 until March 2000 and the bubble-burst from March 2000 until the low-point of the NASDAQ score in October 2002 (see figure 1). After that period, the stock exchanges slowly recovered.
Here are some companies which survived the dot-com bubble.
The Dot-com Crash of 2000-2001
As with the Crash of October 1987, the 2000 dot-com market collapse was triggered by technology stocks. Investors' interest in internet related companies increased to a frenzied level following massive growth and adoption of the internet.
Highly speculative internet stocks helped propel the tech-dominated Nasdaq up more than 500% from 1995 until the bubble burst in March 2000. The index had traded above 5,000 before it then tumbled by nearly 80% to a multidecade low of 1,108 in October 2002.
The dot-com bubble (also known as the dot-com boom, the tech bubble, and the Internet bubble) was a stock market bubble caused by excessive speculation of Internet-related companies in the late 1990s, a period of massive growth in the use and adoption of the Internet.
Abundance of venture capital
Money pouring into the funding of tech and internet company start-ups by venture capitalist and other investors was one of the major causes of the dotcom bubble. In addition, cheap funds obtainable through very low interest rates made capital easily accessible.
What is the "Dot-Com" Boom? People investing in online bushiness in hopes of starting up internet-based markets.
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Click on the type of investor that was hit the hardest when the dot-com bubble burst in 2000.
Providing information is not a characteristic of the Internet.
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