Dot-com in the era in which the company related to internet and technolgy stocks are plumtting. Many startup was on the rapid rise and there stock prices are soring which was fuled my the investement.
It was the time when profitibiltiy come long way down and everyone see the future in internet compnay. It all come crassing down one day.
We can divide the boom in two era:
1
2
3
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1995 Pre bubble 1998 Bubble 2000
Why did the dotcom bubble burst?
The dotcom bubble burst when stream of investment began to dry up. In the years preceding the bubble, record low interest rates, the adoption of the Internet, and interest in technology companies allowed capital to flow freely, especially to startup companies that had no track record of success. Valuations rose and money eventually dried up. This led companies, many of which didn’t even have a business plan or product, to collapse, causing the market to crash.
Moral of the carsh
Excess of everything is bad.