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Hiral Jain

Stealth • 7m

Hey there, folks! Have you noticed how the stock prices of companies with an e-prefix or a .com at the end have been soaring? I'm referring to the infamous burst of the IT bubble in 2000. Information Technology (IT) bubble or Dot.Com bubble roughly covered the period 1997- 2000. During this period, many new Internet-based companies were started. The low interest rates in 1998-99 encouraged the start-up internet companies to borrow. Due to the rapid growth of the internet and seeing vast scope, venture capitalists invested huge amounts in these companies. Due to over-optimism, investors were less cautious. There was a great rise in their stock prices in the companies that they could cause their stock prices to increase by adding an "e-" prefix a ".com" to the end. Continued in the comment section 👇 Source CA FOUNDATION Business economics study material💀

6 replies10 likes

Replies (6)

Sairaj Kadam

Stealth • 7m

Investing a lot during the dot-com bubble seemed like a daring move that paid off for many investors. The movie "The Big Short" really captures this time, showing how exciting it was but also how it all fell apart in the end. Some people made billions, but a lot of folks ignored the big risks involved because they were so caught up in the excitement. This whole period is a reminder that when markets get crazy, it's crucial to stick to simple and sensible financial rules. (As always as, I as say Basic and logical)

0 replies1 like

Shreyas Ramdasi

Stealth • 7m

Hey yeah it's crazy how those e- and .com companies were all the rage back then It just shows how quickly investor sentiment can drive up stock prices sometimes beyond reason.

1 replies1 like

Hiral Jain

Stealth • 7m

These companies offered their services/goods for free to grab consumers and charge high rates later. As a result, these companies saw high growth and a type of bubble developed. The "growth over profits" mentality led some companies to engage in lavish internal spending, which could not be sustained long and the bubble collapsed. Many companies ran out of capital and were acquired or liquidated. Stock markets crashed and slowly the economies began falling.

1 replies2 likes

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Sameer Patel

Stealth • 8m

The dot-com Crisis The .com crisis, or dot-com bubble, was a period of excessive speculation in internet-related companies from 1995 to 2000. Investors poured money into startups with inflated valuations despite many lacking solid business models. Th

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Inactive

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Is GenAI the New Dot-Com Bubble? Let's Break It Down 📊 The AI hype is real, but is history repeating itself? 🔄 Similarities to the Dot-Com era: → Massive investments pouring in 💰 → Overvalued companies with little revenue 📈 → Promises of revol

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Anonymous

Stealth • 7m

Do you think the indian stock market is a bubble right now?

18 replies10 likes

OMPRAKASH SINGH

Stealth • 1m

How do some stocks suddenly rise in the stock market? Let’s find out 🤯 Market and Economic Factors 1. Demand and Supply: When the demand for a stock increases and supply decreases, its prices rise. 2. Economic Growth: If a company's business is

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New York Stock Exchange (NYSE) experienced a technical glitch on June 3, 2024, which caused a significant drop in the stock prices of several major companies, including Berkshire Hathaway and Barrick Gold. The glitch led to trading halts and unusual

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Pawan Gupta

Stealth • 5m

They don't think raising prices didn't work until you work on the internet speed...

0 replies4 likes

Acevolt

Stealth • 6m

Now a days Indian stock market performs a strange it's gave a approx 5.00 percent return in one month even most of the companies PE ratio is not good . What u think it is a bubble ? It's a best time to invest or exit the market ?

3 replies5 likes

Chintan Udani

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Zoho CEO Sridhar Vembu recently emphasized the need for Indian tech companies to prioritize sustainable revenue growth over short-term valuations. He cautioned that an excessive focus on immediate stock prices and loose funding environments can distr

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Nirmala Malviya

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Anonymous
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Amazon • 4m

In November 2006, Google acquired YouTube for a staggering $1.65 billion in stock. This was just 18 months after YouTube's creation. What's lesser-known is that YouTube's success was so massive, it was using more bandwidth in 2006 alone than the ent