The DotCom Bubble

1
The Dot-Com Bubble

• Kevin Rose
• David Stark
• Josh Brannon
• Matt Meikle

2
Peak of the Bubble
3
Years Leading up to Bubble

• Al Gores Information Superhighway craze (early
  1990s)
• Not Internet focused in the beginning

4
Years Leading to Bubble ..

• Speculative Bubble covering 1995-2001
• Rapidly rising stock prices
• Widely available venture capital

5
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.

6
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
  Communications

7
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
  money
• Citigroup and Merrill Lynch fined millions by SEC
  for misleading investors
• Huge layoffs of technology experts

8
Other results

• The real estate craze that followed the burst of
  the bubble.
• People felt inclined to invest in things less
  risky.

9
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.

10
Market Schooling

• Appreciating new ideas rather than focusing on
  the process of outcomes bad.
• Dont act blindly when investing large amounts of
  money.

11
(No Transcript)