Topic > The Dot.Com Bubble Phenomenon: The Rise and Fall of…

When the Internet first made its appearance in the business world, outside of government and military use, the term dot was introduced .com. The technical term “.com” is defined as a suffix used to describe a business that uses the Internet as its primary or sole marketplace for the transfer of goods and services. It was used as a suffix for the numerous existing web addresses. It took only a few months for .com websites to become the dominant form of commercial transaction (Simpson & Simons, 1998). The phenomenon behind this story lies in the rapid rise and fall of dot.com companies and the actors, events, and mindsets that accompanied the boom and bust of the bubble (Simpson & Simons, 1998). In 1995 Netscape was one of the first dot companies. .com to join the NASDAQ Stock Exchange, an automated exchange that, after the Dot.com power struggle, has become associated primarily with technology stocks. At that time the NASDAQ was not yet considered a technology stock exchange and Netscape entered it. In 2000 the NASDAQ 100 Composite Index peaked at 5,132 points, or more than 500% from its original 1995 level. America was in the grip of dot.com hysteria, and anyone with little more than an idea could launch a web-based company and become a “paper millionaire” almost overnight. It is important to note that the NASDAQ 100 Composite Index only started at 100 points (Morrison & White, 2000). The general mindset of investors' business approach has changed dramatically from investing through business models and principles to the “gold rush” ( Senn, 2000 ) similar to how things happen before the stock market close today. Many people believed that “new economy” businesses would become the blue chips of the future. It's an important piece... center of the paper... Orrison, M., & White, C. (August 2000). Super.Com: An analysis of message strategies used in Super Bowl ads for dot.Com companies. Paper presented at the Association for Education in Journalism and Mass Communication, Phoenix, AZ.Mougayar, W. (1998, November 2). E-commerce? E-commerce? Who takes care of e-commerce? Computerworld Parker, R.P., & Grove, C.B. (2000, July). Census Bureau advances e-business measurement. Business Economics, 35, 63-65.Senn, J. A. (2000). Electronic commerce: beyond the dot com boom. National Tax Journal, 53(3), 373-383. Simpson, G. R., & Simons, J. (1998, October 8). The dotted line: A small Internet company has obtained a large monopoly. The Wall Street Journal, pp. A1.White, C., & Scheb, J. (2000). The impact of media messaging on the Internet: Internet anxiety as a factor in the adoption process in new media and US society, 2(2), 181-194.