Internet Bubble

Internet Bubble History

Deshawn Pryce

DeVry University

Introduction to E-Commerce

Professor Mackenzie

August 8, 2013

Table of Contents

Introduction 3

Company List that were Impacted 3

Overview of the Internet Bubble History 4

Pets.com History and Analysis 5

Cisco Systems History and Analysis 5, 6

Amazon.com History and Analysis 6

NASDAQ Stock History and Analysis 6, 7

America Online (AOL) History and Analysis 7

References 8, 9

Internet Bubble History

The Internet bubble also known as the Dot-com bubble played a very important and major role in the booming internet World Wide Web businesses. This period manifested the forming of a group of new internet-based businesses generally referred to as dot-coms. The internet stocks symbolized one of the largest theoretical wealth extremes of all time.

The Dot-com Bubble

Corporations can cause their stock prices to increase just by adding a “e-prefix to their name or a .com” to the end which one writer called “prefix investing” (Maznick, 2003, para. 2). With a mixture of swiftly growing stock prices, market assurance that enterprises would turn forthcoming profits, individuals assumption in stocks, and widely accessible venture capital a setting was created in which many stockholders overlooked traditional metrics that should have be utilized when making the decisions on investing money into stocks. The Price-to-earnings ratio (P/E) which is the calculated by using the market price per share divided by annual earnings per share should have use to evaluate these stocks.

History of Dot-com Bubble

When the Dot-com bubble got started and how it was profitable for the two-three years it became the biggest investment both in the US and non-US countries. Companies that were affected tremendously by the dot-com bubble when it busted in 2000-2001 such as (Pets.com, Cisco Systems, Amazon.com, NASDAQ stock market, and American Online). How is each company doing today,...