The Dot-Com Bubble - PowerPoint by linzhengnd


									The Dot-Com Bubble
      Kevin Rose
      David Stark
     Josh Brannon
      Matt Meikle
Peak of the Bubble
Years Leading up to Bubble …
Al Gore’s “Information Superhighway”
craze (early 1990’s)
Not Internet focused in the beginning
 Years Leading to Bubble ..

Speculative Bubble covering 1995-2001
Rapidly rising stock prices
Widely available venture capital
     E-Business Attraction
Low interest rates – low start up costs.
Connecting business relatively cheaply.
Less caution toward LARGE investments.
New business models – operating in debt.
    Aftermath of the Dot-Com Bubble

Several Communication companies sold their
assets for cash or filed for bankruptcy
   WorldCom
      Overstated profits by billions
      Stock Crashed
      Filed largest corporate bankruptcy in U.S. history
   North Point Communications, Global Crossing, JDS
    Uniphase, XO Communications, and Covad
    Aftermath of the Dot-Com Bubble

Many dot-coms ran out of capital and were
acquired or liquidated
Several companies and executives accused or
convicted of fraud for misuse of shareholders
   Citigroup and Merrill Lynch fined millions by SEC for
    misleading investors
Huge layoffs of technology experts
            Other results
The real estate craze that followed the
burst of the bubble.
People felt inclined to invest in things less
          The Re-Build
Resulted in falling back on orthodox
business /or business models.
To this day, the number of BILLIONS of
dollars lost has not been determined.
        Market Schooling
Appreciating new ideas rather than
focusing on the process of outcomes =
Don’t act blindly when investing large
amounts of money.

To top