Also known as the internet bubble or the information technology bubble, the dotcom bubble was the unprecedented rise in equity valuations of internet-based tech companies during the bull market of the late 1990s.
Thanks mainly to speculation and substantial funding for these new internet start-ups, investments in dot-coms (named as such for the .com online top-level domain [TLD] used by such companies) boosted the NASDAQ Composite Index (COMP) from 751 in January 1995 to a peak of 5,048.62 on March 10, 2000. But the bubble eventually burst in March 2000, with many companies failing to even come close to fulfilling their promise. As such, the NASDAQ fell by more than 75 percent between March 2000 and October 2002, thus wiping out more than $5 trillion in market value.
During this time, several of the most hyped tech companies ended up declaring bankruptcy, such as Pets.com, 360networks and eToys.com. That said, others managed to survive and enjoy phenomenal growth to stand as some of the world’s biggest companies, including Amazon, eBay and Cisco. Continue Reading from International Banker
