What was the bubble of network economy in 2000-2002?

Internet bubble (also known as dot bubble or dot bubble) refers to the speculative bubble from 1995 to 200 1. In the stock markets of Europe, America and many Asian countries, the stock prices of enterprises related to science and technology and emerging Internet rose at a high speed, reaching its peak on March 10, 2000 when the Nasdaq index reached its highest point of 5048.62. During this period, the market value of stock markets in western countries increased rapidly under the impetus of the Internet sector and related fields. The symbol of this period is the establishment of a group of internet companies, usually called "com", and most of them failed to invest in the end. 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.

Form:

1994, the appearance of mosaic browser and World Wide Web made the Internet attract the public's attention. From 65438 to 0996, public websites have become a necessity for most American listed companies. At the beginning, people only saw that the Internet has the characteristics of free publishing and instant global information, but gradually people began to adapt to the two-way communication on the Internet and began direct business (e-commerce) and global instant group communication with the Internet as the medium. These concepts have attracted 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 by using this new model.

This technology can reach millions of people around the world at a low price in a short time, and sell and communicate with them, changing 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 not possible a few years ago, and attracted the investment of venture capital.

At the beginning of the bubble, three major technology industries benefited from it, including Internet network infrastructure (such as WorldCom), Internet tools and software (such as Netscape, 1995, 65438+February IPO) and portals (such as Yahoo, 65438+April IPO).

Growth:

Venture capitalists have witnessed a record rise in the share price of Internet companies, so they act faster and are no longer as cautious as usual. They choose to let many competitors enter, and then the market decides the winner to reduce the risk. The low interest rate of 1998-99 helps 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 they have the novel concept of "network company".