The Dot-com Bubble

Google
BePp74

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BePp74
Jan 19, 2021 4 Comments

Are there dot-com veterans around?
Lately, I heard a thesis from 2 friends that the reason behind the bubble was the immature stage of the web (“there just weren’t enough users back then”).

What do you think about it?

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  • Walmart
    Mr Red

    Go to company page Walmart

    Mr Red
    What caused the bubble in my view is companies that could build an online website had enormous over inflated valuations. Every company was building their .com (hence .com bubble) some companies were entirely online, but their business plan sucked. Only passed back in 90’s because there was too much money. Also because everyone felt brick and mortar was going away. To some extent this has happened

    This caused lots of ipos where the avg Joe made out good.

    Someone that filled boxes with books made over million in stock. Yes that was what we call amazon warehouse worker today.

    Early 90’s very few people had internet. Prodigy mostly... by end of decade AOL was sending everyone a CD of 1000 free hours. Computers were much more common household appliances.

    Etrade was popular. People piled all their money into tech stocks and unfortunately for many, tech stocks only on FOMO. NASDAQ lost something like 80+% peak to trough. Retail investors got totally fleeced.

    Today a mobile phone has become standard. Thus the world of advertising has moved to where people have placed their attention.

    I see many similarities ...

    Apps/AI/ML is the new .com
    Mobile is the desktop
    Robin Hood is the new etrade
    Jan 19, 2021 0
  • SAP
    Kduo32

    Go to company page SAP

    Kduo32
    Plenty of users on desktops in 2000. Scaling was harder before the public cloud due to the need to provision expensive Sun servers. That was the downfall of Pets.com
    Jan 19, 2021 0
  • Google / Eng
    Morono🦠

    Go to company page Google Eng

     Morono🦠
    Can you expand the argument? Not enough for what?
    Jan 19, 2021 1
    • Google
      BePp74

      Go to company page Google

      BePp74
      OP
      I guess the entire argument is “there just weren’t enough users to justify companies valuations back then”. In business terminology - TAM was too small.
      Jan 19, 2021