1. The DotCom Bubble in
California
s1190211 Taishi Tsukahara

2. Contents
● Dot-com Bubble
● What was the Dot-com bubble
● Bubble Growth
● Soaring stock
● Free spending
● The Bubble bursts
● Fall In
● Worldwide Influence
● Japanese Influence
● Aftermath
● References

3. Dot-com Bubble
● The Dot-com bubble was a speculative bubble covering
roughly 1995-2000 duaring which stock markets in
industrialized nations saw their equity value rise
rapidly from growth in the more recent Internet sector
and related fields.

4. What was the Dot-com bubble
● The dot-com bubble was a stock market bubble which
popped to near-devastating effect in 2001. It was
powered by the rise of Internet sites and the tech
industry in general, and many of these companies went
under or learned some valuable lessons when the
bubble finally burst. Many investors lost substantial
sums of money on the dot-com bubble, helping to
trigger a mild economic recession in the early 2000s.

5. Bubble Growth
● Venture capitalists saw record-setting growth as dot-
com companies experienced meteoric rises in their
stock prices and therefore moved faster and with less
caution than usual, choosing to mitigate the risk by
starting many contenders and letting the market
decide which would succeed.
● This combined with a period of relative wealth, with
many ordinary people with spare cash investing and
day-trading, which caused a lot of many to chase the
available investment opportunities.

6. Soaring stock
● The term may be used with certainty only in
retrospect when share prices have since crashed.
● A bubble occurs when speculators note the fast
increase in value and decide to buy in anticipation of
further rises, rather than because the shares are
undervalued.
● Typically many companies thus become grossly
overvalued. When the bubble "bursts," the share prices
fall dramatically, and many companies go out of
business.

7. Free spending
● According to dot-com theory, an Internet companys
survival depended on expanding its customer base as
rapidly as possible, even if it produced large annual
losses.
● For instance Amazon was spending on expanding
customer base and alerting people to its existence
Google was busy spending on creating more powerful
machine capacity to serve its expanding search engine.

8. The Bubble bursts
● The bursting of the bubble may also have been related
to the poor results of Internet retailers following the
1999 Christmas season.
● This was the first unequivocal and public evidence that
the get-rich-quick Internet strategy was flawed for
most companies.
● These retailers result were made public in March when
annual and quarterly reports of public firms were
released.

9. Fall In
● A lot of venture companies related.
● Google and Amazon carry through.
● September 11, 2001, United States rushed into a
serious recession.

10. Worldwide Influence
● Ireland achieved this economic growth that was called
“Miracle of Keruto”.
● Chinese IT has not developed, so it wasnt damaged
hard.

11. Japanese Influence
● Japan rise hanging cause of United States of Bubble.
● However the bubble is not so long.
● The influence of burst of economic bubble on Japan
was extremely limited.

12. Aftermath
● More in-depth analysis shows that 50% of the dot-coms
companies survived through 2004.
● It is safe to assume that the assets lost from the Stock
Market do not directly link to the closing of firms.
● More importantly, however, it can be concluded that
even companies who were categorized as the "small
players" were adequate enough to endure the
destruction of the financial market during 2000-2002.

13. References
● http://en.wikipedia.org/wiki/Dot-
com_bubble#Bubble_growth
● http://en.wikipedia.org/wiki/United_States_Cons
titution_and_worldwide_influence