s1170267 - Nguyen Tat Thang

1. The “Californian” Dot-com
Bubble
University of Aizu
Writing for the Workplace – Fall 2011
Nguyen Tat Thang – s1170267

2. Content
• “.com” bubble.
• Blowing the bubble
• The bubble burst
• Dot-boom.

3. .com bubble
• At the mid-1990s, the Internet burst with
the advent of World Wide Web.
• Big Company official web site have
domain name .com. www.google.com
www.
or acle.c www.intel.com
om
www.y
ahoo.c
• Idea with bubble: om
What is in bubble?
A “relatively” big
balloon. The air: sometime mean
nothing

4. .com bubble
• .com bubble: so-called Internet bubble,
Information technology bubble.
• “Dot-coms”: the period was marked by the
founding of a group of Internet-based
company. Which do their most business on
Internet, through “.com website” – the top level
commercial website domain name.
• Silicon Valley: valley of technological Titans.

5. Blowing the bubble
• The strategy: “GET BIG FAST”.
• The companies offer their services or end
products for free, expecting that they could build
enough brand awareness to charge their
services later.
• Loss period: pay for their expense without any
income.
• Many stocks became dizzying height and made
the initial controllers of the company wildly rich
on paper.

6. The bubble burst
• 1998-99, the low interest rate in US help
company to increase the capital amount.
• Over 1999-2000, the interest rate was
increased 6 times.
• April 4 2000, NASDAQ fell from 4283
points to 3649 and rebounded back to
4223 points.
• By 2001, the bubble was deflating with full
speed

7. Dot-Boom
• Investor usually referred failed dot-com as dot-
boom.
• The dot-com ceased trading after burning
through their venture capital. Many of them had
never made ‘net’ profit.
• Bankruptcy and liquidating.
• The stock market crash of 2000–2002 caused
the loss of $5 trillion in the market value of
companies from March 2000 to October 2002.

8. Conclusion
The dizzying fast growth of new technology
bring a lot of new chances for business
and trading but besides that the
overestimate of potential cause the fatal
risk for the market.

9. References
• http://en.wikipedia.org/wiki/Dot-com_bubble
• http://www.guardian.co.uk/technology/2001/jul
• http://en.wikipedia.org/wiki/Boom_and_bust