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Hiral Jain

Content writer • 1y

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

Hiral Jain

Content writer • 1y

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.

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Shreyas Ramdasi

Mechanical Engineer • 1y

It's interesting how those companies initially offered everything for free to attract users, but eventually, that strategy couldn't be sustained. The focus on growth over profits created a bubble that eventually burst, leading to a lot of fallout in the market. It's a reminder of the importance of sustainable business models and the dangers of chasing growth at any cost.

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