What Caused the Dot Com Bubble?

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dot com bubble

During the late 1990s, a phenomenon known as the dot com bubble was causing unprecedented speculation in Internet-related companies. With the rapid growth of the Internet, this caused an enormous increase in the value of these companies. Many of these companies experienced a dramatic decline in their stock prices. But what caused the dot com bubble? This article explains what caused the dot com bubble. Let’s take a look at its causes and how you can avoid it in the future. Find out – candymarketing.co.uk

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The Dot-com boom began in the mid-1990s, and hundreds of internet companies went public. While most of these companies spent millions on marketing, investors only cared about the company’s growth. Some of these companies sold their products at a loss and made meager acquisitions to maintain market share. The price of these companies rose astronomically and investors rushed into the market, eager to make a quick buck.

As the popularity of the Internet grew, so did the value of the companies. The valuations of these companies increased quickly. However, most of these companies failed to become profitable. During the dot com bubble, only 48 percent of dot-com firms survived. This is due in part to the fact that most DOT-COM companies had a high value when they were founded. The rise of the dot-com bubble was also accompanied by the bursting of the tech bubble.

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