Millenials don’t know a world without the internet. Even those from older generations probably can’t imagine going through a day without going online to search the web and check their social media profiles. But before being able to enjoy everything the internet has to offer, there was first a period of chaos. Commonly referred to as the dot-com or internet bubble, this era helped shape what the internet currently is today.
This period is usually dubbed the dot-com bubble of 2000. However, it’s worth noting that it all started as far back as 1995. During this time, internet-based companies were established left and right. They enjoyed a surge in profits and stock prices, as everyone was on the internet bandwagon. Investors were quick to shell out cash to become part owners of different online companies, even if they didn’t know much about them. Simple adding the “e-” prefix can turn a company into an internet sensation.
The early successes of some companies during the growth of the bubble paved the way for more investors to establish new internet-based companies The big players even bought out startups, believing they can cash in over the long term. But this success was largely dependent on expanding customer base as quickly as possible. Some companies simply couldn’t keep up, leading to large annual losses.
After the turn of the century, the tech industry started to look like other traditional sectors in the US. Investors have become wiser and market leaders more cautious about how to grow their business effectively. Despite the downfall of multiple firms, studies show that nearly half of the dot-com companies managed to survive through 2004. Today, ten tech firms belong to the list of 100 most profitable corporations in the US.