Filed under: Websites | Tags: Amazon, Dot Com Boom, Ebay, Website Stock Investment
Ever heard of Ebay? maybe even Amazon or Paypal? These are some of the bigger, and lasting, sites that came from a time known as the “DotCom Boom”. In the late 1990′s and early 2000′s people were realizing the drastic pull towards everything being bought and sold via the internet so everyone tried to monopolize on those facts. Companies started popping up everywhere giving business plans using just the internet. These companies stocks sky rocketed because everyone could see that the market was quickly drifting to the internet and it had promise of making you rich over night. But, only one company could capitalize in their field which led to the failure of hundreds of companies but at that time it was all a race to the top.
The dotcom boom or “bubble” burst on March 10th, 2000 when the technology heavy NASDAQ stock market peaked at over double its value the prior year. By 2001 the majority of these dotcom companies ceased to exist having burnt through their venture capital without even really gaining a gross profit. A good amount of these companies were even sued for fraud giving these companies the corky nick-names of dot-con and dot-bombs. The burst also had to do with the 6 interest rates made by the federal reserve till 2000 to catch up with the economy. Also y2k came into play when companies spent so much money preparing for the incedent with nothing to come of it they were left with drained pockets. Another thing that led to these companies failing was that they were under the impression that internet traffic would continue to spike upwards so they spent so much money to make it so their sites and servers could handle all the traffic when, in reality, it didn’t spike as much as they had thought.
The companies that became well established and made it through were companies such as Ebay, Amazon, and PayPal which seem to have the workings to stay strong and be long-lasting companies that we use on a daily basis.
