Tech IndustryJun 6, 2022
AppfolioaAts17

Comparison between dot com bubble vs current market crash

What are your thoughts? I am no expert on this topic but just a feeling that it's a modern society comparing between 2000 and 2022 isn't an apple to apple comparison. Below was copied from wikipedia: "On Friday March 10, 2000, the NASDAQ Composite stock market index peaked at 5,048.62.[42] However, on March 13, 2000, news that Japan had once again entered a recession triggered a global sell off that disproportionately affected technology stocks.[43] Soon after, Yahoo! and eBay ended merger talks and the Nasdaq fell 2.6%, but the S&P 500 rose 2.4% as investors shifted from strong performing technology stocks to poor performing established stocks.[44] On March 20, 2000, Barron's featured a cover article titled "Burning Up; Warning: Internet companies are running out of cash—fast", which predicted the imminent bankruptcy of many Internet companies.[45] This led many people to rethink their investments. That same day, MicroStrategy announced a revenue restatement due to aggressive accounting practices. Its stock price, which had risen from $7 per share to as high as $333 per share in a year, fell $140 per share, or 62%, in a day.[46] The next day, the Federal Reserve raised interest rates, leading to an inverted yield curve, although stocks rallied temporarily.[47] Tangentially to all of speculation, Judge Thomas Penfield Jackson issued his conclusions of law in the case of United States v. Microsoft Corp. (2001) and ruled that Microsoft was guilty of monopolization and tying in violation of the Sherman Antitrust Act. This led to a one-day 15% decline in the value of shares in Microsoft and a 350-point, or 8%, drop in the value of the Nasdaq. Many people saw the legal actions as bad for technology in general.[48] That same day, Bloomberg News published a widely read article that stated: "It's time, at last, to pay attention to the numbers".[49] On Friday, April 14, 2000, the Nasdaq Composite index fell 9%, ending a week in which it fell 25%. Investors were forced to sell stocks ahead of Tax Day, the due date to pay taxes on gains realized in the previous year.[50] By June 2000, dot-com companies were forced to reevaluate their spending on advertising campaigns.[51] On November 9, 2000, Pets.com, a much-hyped company that had backing from Amazon.com, went out of business only nine months after completing its IPO.[52][53] By that time, most Internet stocks had declined in value by 75% from their highs, wiping out $1.755 trillion in value.[54] In January 2001, just three dot-com companies bought advertising spots during Super Bowl XXXV.[55] Without question September 11 attacks later accelerated the stock-market drop.[56] Investor confidence was further eroded by several accounting scandals and the resulting bankruptcies, including the Enron scandal in October 2001, the WorldCom scandal in June 2002,[57] and the Adelphia Communications Corporation scandal in July 2002.[58] By the end of the stock market downturn of 2002, stocks had lost $5 trillion in market capitalization since the peak.[59] At its trough on October 9, 2002, the NASDAQ-100 had dropped to 1,114, down 78% from its peak.[60][61] " TC: 190K

Google borgmaster Jun 6, 2022

If you call this a “market crash” I got bad news for you

Tableau 3FortNite Jun 6, 2022

That was much worse than this.

Barclays PLC spromos Jun 6, 2022

The “crash” has nor happened yet. These are just tremors. Wait for it please … For stock market analysis, check most important historical data — a called P/E ratio. Check history of legacy non-tech stock on average PE ratios each month. Compare where they are now to check if mkt is in a bubble. Then Compare P/E ratio averages of tech firms. Do the same analysis and you will get your answer on speculative mkt vs a long term market. You may think lack of innovation killed lot of past tech firms but most of the time its over-speculation.

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bodhisa₶va Jun 6, 2022

it’s pretty common sentiment that we’re just getting started. I agree it probably won’t take as long to recover this time around

Amazon giejsnc Jun 6, 2022

back then they didn’t even have revenue nowadays investors are very cautious, gotta at least have solid sales.

Google 👁️♥️🚀 Jun 6, 2022

Web3 feels like the dotcom bubble. Lots of insane investment there. Thankfully most of the tech companies are not web3.