The DotCom Bubble occurred from 1995 to 2000 when stock prices of Internet companies rose rapidly due to commercial growth on the Internet. Many companies saw stock price increases simply by adding "e-" or ".com" to their names, despite lacking viable business models. In 1999-2000, as the US Federal Reserve increased interest rates and the economy slowed, the NASDAQ index peaked and then declined over 10% by March 2000, signaling the bubble had burst. Most DotCom companies ceased operations due to burning through venture capital. While some companies like Amazon and eBay survived, the bubble bursting led to trillions lost in market value and widespread job losses in the tech sector.

1. The DotCom Bubble in
California
Natsumi Sato(2013.1)

2. What is DotCom Bubble
The DotCom bubble came from 1995 to 2000.
Stock markets in industrialized nations saw their
equity value rise rapidly from growth in the more
recent Internet sector and related fields. The
DotCom bubble is meant to refer to the steady
commercial growth of the Internet with the advent
of the world wide web. Companies were seeing
their stock prices shoot up if they simply added
an “e-” prefix to their name and/or a “.com” to the
end. A stock market bubble is a self-perpetuating
rise or boom in the share prices of stocks of a
particular industry.

3. Lack of DotCom Model
• A vast number of companies all had the same
business model of monopolizing their
respective sectors through network effects,
and it was clear that even if the plan were
sound, there could only be one network-
effects winner in each sector, and therefore
that most companies with this business plan
would fail. Many sectors could not support
even one company powered entirely by
network effects.

4. Bubble Burst
• Over 1999 and early 2000, the U.S. Federal
Reserve increased interest rates six times,
and the economy began to lose speed.
NASDAQ Composite index peaked at
5,048.62 on Friday, March 10, 2000. NASDAQ
had lost more than 10 percent from its peak
on March 20, 2000. DotCom bubble was
deflating at full speed by 2001.

5. Bubble Burst
• A majority of the DotCom company ceased
trading after burning through their venture
capital. Investors often referred to these
failed DotCom Company as "dot-bombs."
When the bubble bursts, the share prices
fall dramatically, and many companies go
out of businesses.

6. Company of After Bubble Burst
• America Online merged with Time Warner in the
second- largest M&A transaction worldwide on
January 11, 2011, and the Transaction has been
described as “the worst in history”. WorldCom was
found practicing illegal accounting, and WorldCom’s
stock price fell drastically when this information went
public and became brankrupt. A few large DotCom
companies, such as Amazon.com and eBay, survived
the turmoil and appear assured of long- term survival,
while others such as Google have become industry-
dominating mega-firms.

7. Problem of After Bubble Burst
• Many DotCom company ran out of capital and
were acquired or liquidated.  The domain names
were picked up by old-economy competitors or
domain name investors.  Several companies and
their executives were accused or convicted of
fraud for misusing shareholders money. Several
communication companies could not whether the
financial burden and were forced to file for
bankruptcy.

8. Problem of After Bubble Burst
• The stock market crash caused the loss of 5
dollars trillion in the market value of
companies from March 2000 to October
2002. 50% of the DotCom companies
survived through 2004. Technology experts
such as computer programmers found a
glutted job market. University degree
programs for computer-related careers saw a
noticeable drop in new students.

9. Conclusion
• The DotCom bubble increased market price of
many DotCom companies. When bubble
burst, many DotCom companies went out of
DotCom businesses. After bubble burst, most
survived companies are dominating DotCom
companies such as Google and Amazon. After
bubble burst, both individuals and companies
sustained damage.

10. Reference
• WIKIPEDIA, Dot-com bubble,
http://en.wikipedia.org/wiki/Dot- com_bubble wiseGEEK,
What was the Dot-com Bubble?,
http://www.wisegeek.com/what-was-the-dot-com-
bubble.htm
• NetHistory, History of the Internet – the Dotcom bubble,
http://www.nethistory.info/History%20of%20the%20Intern
et/dotc om.html
• THE FREE LIBRARY, California dot.com boom went bust: the
wild variations in California’s revenue stream make
budgeting really tough,
http://www.thefreelibrary.com/California+dot.com+boom+
went +bust%3A+the+wild+variations+in...-a084669791