the internet bubble (also known as the dot bubble) refers to the speculative bubble from 1995 to 2111. In the stock markets of Europe, America and many Asian countries, the stock prices of technology and emerging Internet-related enterprises rose at a high speed, reaching the peak when the NASDAQ index reached the highest point of 5148.62 on March 11, 2111. During this period, the stock markets in western countries saw the rapid growth of their market value driven by the Internet sector and related fields. The symbol of this period is the establishment of a group of internet COMpanies, usually called "com", most of which failed in their final investment. The combination of soaring stock prices and buyers' speculation, as well as the extensive use of venture capital, has created a hotbed, which makes these enterprises abandon the standard business model, break through the bottom line (traditional model) and focus on how to increase market share.

Formation:

In p>1994, the appearance of Mosaic browser and World Wide Web made the Internet attract public attention. In 1996, an open website became a necessity for most American listed companies. At the beginning, people only saw that the Internet has the characteristics of free publishing and instant worldwide information, but gradually people began to adapt to the two-way communication on the Internet, and started direct business (e-commerce) and global instant group communication with the Internet as the medium. These concepts have fascinated many young talents, who believe that this new business model based on the Internet will rise and expect to be the first people to make money with this new model.

This technology, which can reach, sell and communicate to millions of people all over the world in a short time at a low price, has changed traditional business beliefs, including advertising, mail order sales and customer relationship management. Internet has become a new best medium, which can instantly connect buyers and sellers, propagandists and customers at low cost. The Internet has brought various new business models that were still impossible a few years ago, and attracted investment from venture funds.

At the initial stage of the bubble, three major technology industries benefited from it, including Internet network infrastructure (such as World Com), Internet tools and software (such as Netscape, IPO in February, 1995) and portal websites (such as Yahoo, IPO in April, 1996).

Growth:

Venture capitalists have witnessed the record rise of Internet companies' share prices, so they move faster, no longer cautious as usual, and choose to let many competitors enter, and then the market decides the winner to reduce the risk. The low interest rate in 1998-99 helped to increase the total amount of start-up funds. Most of these entrepreneurs lack practical planning and management skills, but they can still sell their ideas to investors because of the novel concept of "DOT COM".