Bursting the Bubble
During Superbowl XXXIV, 17 dotcom companies spent $44 million on ad spots during the big game, a year later at XXXV this number was 3 . Why was this? The Bubble burst. On March 10, the combined value of stocks on NASDAQ was $6.71 trillion. A month later April 6, this was $5.78 trillion. This showed a decrease of nearly a trillion dollars in stock value. Tom Wyman, a JP Morgan analyst, said that some of these companies were losing between $10-30 million per quarter , which wasn’t sustainable and would result in many companies folding. Between March 2000 and October 2002, NASDAQ fell by 78% and S&P500 fell by 49%. Pets.com share price from IPO to collapse - Bloomberg One of the biggest casualties was Pets.com , which collapsed 10 months after its IPO. One of the reasons for Pets.com failing was it tried to grow to quickly. The company worked through $147 million trying to increase market share, but thought their revenue would grow quick enough to turn a profit, bu...
