📆 In the late 1990s, internet companies witnessed an explosive rise. Everyone was investing, speculating, and hyping up the "new economy" — but it couldn’t last. The bubble burst in 2000, triggering massive losses and a market crash.
What triggered it?
đź”´ Overhyped internet stocks with little to no profit.
đź”´ Venture capital flooding untested companies without solid business plans.
đź”´ Investors were chasing growth, not profitability.
🔴 The dream of endless tech profits — until reality set in.
What followed:
🔢 The NASDAQ lost nearly 80% of its value from 2000 to 2002.
🔢 Dotcom companies like Pets.com and Webvan collapsed. 🔢 Some companies, like Cisco’s shares, still haven’t reached their all-time high since 2000.
🔢 The crash set the stage for the sustained growth in technology that we see today in companies like Amazon, Netflix, Microsoft, etc.
What it taught us:
❌ Speculation can create bubbles, but only a few can survive the crash.
âś… Sustainable growth and solid business plans always win in the long run.