DotCom Boom Timeline

The Dotcom boom all started when Amazon was founded in 1994. Then, Craigslist was founded in 1995. Then other companies like Yahoo!, eBay, and msn were founded, all of which are still popular today. With the rise of the internet, many startup companies quickly became profitable due to its widespread adaptation and growth in the American household. Investors were giving all these companies a lot of money and company evaluations were off the charts. Entrepreneurs faced falling interests rates beginning at around 1998 due to the rise of stock valuations of dot-com companies. The companies were spending a lot of money on marketing and advertisement because they wanted to capture more market share, which caused them to incur net operating losses. As the stock market kept on peaking, with the Dow Jones peaking just after Y2K. Eventually on March 2000 the Dot-com bubble began to peak with the federal reserve increasing interest rates six times and the economy was starting to show signs of slowing down. The interest rates created a highly volatile stock market. Many people quit their jobs because of the bubble bursting. On the Monday after the burst, the market opened 4% lower than it did on Friday. Many companies began to collapse and close down, including Pets.com and companies like eToys declaring bankruptcy. Some other companies did not go bankrupt but they went offline. Investor confidence in companies was damaged because of the dotcom burst. Despite the burst, companies like Amazon, eBay, and Google remained successful.