1. The DotCom Bubble in
California
s1160140 Kiyoto Tanji

2. Contents
● Dot-com bubble
● Bubble growth
● Soaring stock
● Free spending
● The bubble bursts
● Reference

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
company's 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 wasn't
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://www.wisegeek.com/what-was-the-dot-
com-bubble.htm
● http://en.wikipedia.org/wiki/United_States_Cons
titution_and_worldwide_influence