1. The DotCom Bubble
in California
s1170178 Yuya Ito

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. References
 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%20Internet/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