Thursday, March 2, 2017

Dot com Dot bomb

Before this lecture I knew absolutely nothing about the Dot com bust and what it was even about. It kinda sounded like a recession for computers only, which is weird since computers are being used in every aspects of our lives today. There are 5 stages in the Dot com to Dot bomb era, the first being the thrill of people using the internet for the first time. People couldn't believe the power they had at the tip of their fingers. The fact that you could talk to someone in the middle east while you sit in your pjs in Seattle. After this stage, came the boom, the internet had now become "mainstream" and people had their own businesses online, and more and more startups popped up due to this opportunity. The third stage is when all hell broke loose; companies were being sold for insane amounts of money, there was a huge market for  the internet, but too many people had the same ideas. Companies that didn't deserve to have IPO started getting it, and many companies were making a lot of money for not good reasons. Many of these companies had bad business models, and instead of failing, they were making very good revenue. Next came bust, this is where all those businesses who had bad business models started to fail. Many businesses were able to survive, but many did not.

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