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11 May https://en.wikipedia.org/wiki/Dot-com_bubble

Goal : Understand and know what is dotcom bubble crisis

What I have learned :
● The dot-com bubble also known as the dot-com boom, the dot-com crash, the
Y2K crash, the Y2K bubble, the tech bubble, the Internet bubble, the dot-com
collapse, and the information technology bubble
● A dot-co m company is a company that does most of its business on the Internet,
usually through a website that uses the popular top-level domain ".com"
● Peaked in value on March 10, 2000 before crashing.
● Some companies, such as Pets.com and Webvan, failed and shut down. Others,
such as Cisco, whose stock declined by 86%, and Qualcomm, lost a large
portion of their market capitalization but survived, and some companies, such as
eBay and Amazon.com, declined in value but recovered quickly.
● In 1993, Mosaic web browser, a browser that made www. Popular, made people
know more and be interested in networks. The percentage of households in the
United States owning computers increased from 15% to 35%.
Reflection : I learned the basics of Dotcom and how it formed. It helped me to
understand the rest of the data I’m looking for.

15 May
Goal : Causes of DotCom bubble to burst https://www.quora.com/What-caused-the-dot-
com-bubble-in-1998-2000
What I have learned :
● In 1990, there are 2 major companies, e-bay and Amazon. It was the era of
technology where people can easily access internet while relaxing in their house.
● Many companies had their share price went up in a very short period of time
● investors started getting greedy and irrational by investing massive amounts of
money on companies, which barely had a product nor a business plan.
● There were more and more people headed to Silicon Valley to start ventures of
their own and to claim their share of the gold mine. Any and every company with
a 'dot com' as suffix or an 'e' or an 'i' as prefixes would gain investor attraction.
● Money was being thrown around without much thinking about fundamentals of
the company.
● Even small companies that sometimes don’t even know what they need to do,
gain investors and profits. They consumed themselves through false promotions
and failed business models
 ● The emphasis was no more on profits, but just rapid growth and abnormal
publicity for non-existent products.
Reflection : Now I understand what causes it and I knew a lot more than first day.
I knew that technologies are needed that time and people got excited and bought
stocks without thinking carefully

21 May
https://www.investopedia.com/financial-edge/0711/5-successful-companies-that-
survived-the-dotcom-bubble.aspx
Technology boom in the 1990’s , Ebay and Amazon
● The economic boom of the 1990s began in the second quarter of 1991 when the
total value of all goods and services produced in the economy, or gross domestic
product (GDP) increased from -1.8% to 3.14%. From that point forward, for the
next ten years, GDP growth was positive, with the highest quarter being the
second quarter of 2000 when GDP was 7.7%! From 1990 - 1991, GDP grew from
$5.5 trillion to $9.8 trillion.
● Amazon
● the largest online retailer in the world
● Amazon's initial public offering took place on May 15, 1997 at a price of $18 per
share, rising to more than $100 and subsequently dropping to less than $10 after
the bubble burst.
● focused more on brand recognition and less on income, and it did not turn a profit
● Ebay
● number of hosted auctions flew from 250,000 during 1996 to 2 million during just
the first month
Read more: 5 Successful Companies That Survived The Dotcom Bubble https://
www.investopedia.com/financial-edge/0711/5-successful-companies-that-survived-the-
dotcom-bubble.aspx#ixzz5GBkM4Gvr
Follow us: Investopedia on Facebook

18 May
http://eskify.com/10-dot-com-bubble-failures/
http://money.cnn.com/galleries/2010/technology/1003/gallery.dot_com_busts.html
Fail companies
Pets.com
● Pets.com's business model wasn't sustainable.
● About 300 million dollars was invested in the business
● The company lost $147 million in the first nine months of 2000,
● When Pets.com went public in February 2000, its stock started at $11 a share
and rose to a high of $14.
● stock quickly fell below $1 (19 cents)
● and stayed there until its close time.

eToys.com
● Became one of the most visited Web sites for holiday shopping.
● Spent tens of millions of dollars on marketing campaigns and compete for
position with other retailers like Toysrus.com, Amazon.com and Walmart.com.
But eToys failed.
● After reporting a $74.5 million loss in the last quarter of 2000, the company said it
had just enough cash to last until March 31
● It has debt of $247 million, eToys said in February 2001 it had no alternative but
to file for bankruptcy.

theGlobe.com
● Went public on November 13, 1998, its stock jumped a then-record 600% in its
first day of trading.
● The company set the offer price at $9 a share, but the stock opened at $87.
Shares of theGlobe.com rose to a high of $97 during its first day of trading before
closing at $63.50.
● The company raised $27.9 million in its IPO, and its market cap was valued at
$842 million.
● But less than two years later, in August 2001, theGlobe.com's stock failed to stay
above $1 per share.

● Broadcast.com
- a place where television shows would be broadcast live over the internet.
- In 1999, it was purchased by Yahoo for a massive 5.7 billion dollars and failed
- This allowed Google to take their spot as the number one search engine. Yahoo
has been steadily dying ever since
● WorldCom
-internet service provider that grew rapidly
-were forced to take on huge 400 million dollar loans to avoid bankruptcy
-were in debt for over 5 billion dollars and their assets were soon divided up and
 sold off
Top Dot-Bombs
● Webvan: Online supermarket, 30 minutes window, night deliveries, no industry
background and Bankruptcy in 2001

Reflection : I learned that one crisis can damage a lot of big companies.

25 May
Goal : Plan the product
I will not do any research today but I will find some ideas for my product. I will be
making a 6-page brochure for the product which will provide informations in each page.
We will be using a notebook for our journal.

https://writepass.com/journal/2012/10/2001-dot-com-bubble-its-causes-effect-and-
lessons-learnt/
https://www.quora.com/What-were-the-positive-and-negative-impacts-of-the-bursting-of-
the-dot-com-bubble-on-the-world
11/05/18 https://en.wikipedia.org/wiki/Dot-com_bubble
https://www.youtube.com/watch?v=z-XPV-k8Mbc
http://www.businessdictionary.com/definition/dotcom-bubble.html
Goal: understand basic knowledge about Dotcom bubble crisis
What I learned?
- Dotcom bubble is stock market
- It was about internet and technology industry
- internet was new. They are successful because their made website for people to shop
online, so it attract people attention.
- It happened because the growth of internet
- Many people invest without thinking about P/E ratio and profit
- if the company was unprofitable, then the investors were also unprofitable
- When dotcom cannot make profit, the bubble burst
- period → between 1995 and 2000

- internet company have no idea what going on and the company was very unprofitable
- investors continue pour money into the stock market
- they think this company will be possible in the future
- it become bubble → stock prices so big
- in the year 2000, everything burst and everything crashed and when back to the original
point then all people lost their money

Reflection: I reach my goal because I understand and have basic knowledge about dotcom
bubble. Next day, I will research about Dotcom company.

15/05/18
https://ipfs.io/ipfs/QmXoypizjW3WknFiJnKLwHCnL72vedxjQkDDP1mXWo6uco/wiki/Dot-
com_company.html
https://www.investopedia.com/terms/d/dotcom.asp
https://www.quora.com/What-caused-the-dot-com-bubble-in-1998-2000
Goal: Research about what is Dotcom company and reasons for the internet boom
What I learned?
- Dotcom companies are the business on internet through website that have top level
domain or end up with .com and still have in present day
- It started during late 1990s and ended around 2000
- This company can spread out to many consumer because it make people more
comfortable. For example, shopping online
- Dotcom was named because the URL that people visited to do business
- The Dotcom bubble happened because surrounding of development of technology
- 1930s → introduction of radio, automobiles and aviation
- Reason why internet boom
- There were two major laws: 1. Moore’ law → observation of course in the history, the
speed and power of IC chips double every two years
- → the growth of making PCs and computer machines are more reach to people
 - 2. MetCalfe’s law → new line(node) added to Network. It doesn’t make network more
valuable, but it make network growth.
- → So this meant that as the number of users increases, the usefulness of the
network increases, which makes it more compelling for new users to join in.
Reflection: I know about Dotcom company, but I don’t know the reason why internet
boom. I research and found the two laws.

18/05/18
https://www.quora.com/What-caused-the-dot-com-bubble-in-1998-2000
https://www.slideshare.net/mragab/dotcom-crash
https://www.slideshare.net/s1170178/dotcom-10956492
Goal: Research reasons for the internet boom
What I learned?
- Investors know and talk about internet because companies (Netscape and Yahoo) went
to IPOs and it’s very successful
- The expectation on dot-com companies increased, stock price also rise
- Provide product, service freely
- Speculators suggested that this was the start of new economy in e-commerce

- Lockup period: predetermined amount of time following an IPO during which employees
of the underwriter company are not allowed to sell.
- When the lockup period expires, new exponential sellers enter the market (New shares
and new expectations)

- After crash: Dotcom → failed for bankruptcy, Liquidated and acquired)

- Few dot-com survived the crisis such as ebay, Amazom.com and Yahoo!
- Investment should not rely only on: new technology, rapid growth, investor enthusiasm,
first mover’s advantage and copying success
- The vast number of the company all had the same model and the most companies with
his business plan failed
- When the bubble burst, the share prices fall and many companies go out of businesses
- 50 percent of the dotcom companies survived through 2004
- Technology experts such as computer programmers found a glutted job market
Reflection: I research reason why internet boom because the last day, I didn’t know the reason
and today I know the reason why internet boom. I also found some internet company.

21/05/18
https://www.moneycrashers.com/dot-com-bubble-burst/
https://www.investopedia.com/financial-edge/0711/5-successful-companies-that-
survived-the-dotcom-bubble.aspx
Goal: Research what caused dot com bubble end and Companies That Survived The
Dotcom Bubble
What I learned?
- There are two main factors that led to bubble burst
- 1. Many people focus on aspects of individual business that have nothing to do
with how they generated revenue or their cash flow or ability of the company to
use the network to make cash and produce profits to investor
- 2. Significantly Overvalued Stocks: people are valuing internet companies
very high and that is unrealistic and overvalued because they are greedy.
- 5 Successful Companies That Survived The Dotcom Bubble
- Priceline.com: It is travel related website and it helps people to find discount
rates, name their own prices on hotels, car rentals, airfares and vacation
packages.
- Prices share increased and it falls in couple years.
- Then, terrorist attacks, the company faces challenges. → New CEO, Jeffery H.
Boyd, rebuilt the priceline brand and expanded to Europe. Revenue and net
income grow and it survived until this day.
- Amazon.com
- eBay
- Shutterfly
- Coupons.com

22/05/2018
https://www.investopedia.com/financial-edge/0711/5-successful-companies-that-
survived-the-dotcom-bubble.aspx
Goal: research about Amazon.com and eBay companies
What I learned:
- Amazon.com
- Since 1994, Amazon has scared the investors and business theorists with its
weird business model.
- The company pushed for massive growth with no profit at all. The idea was "Get
large or get lost". Even with absolutely no profit in fact, it had reported a loss of
$3 million. eBay too, which was considered a company having no value-based
product to offer, had a great IPO run in 1998. During this time, Amazon stock
value had doubled in a span of a few weeks.
- eBay: expanded its product categories to include practically anything that can sell
and also incorporated different, more popular types of auctions. These moves
proved successful for eBay, which now has more than 17,000 employees with
reported revenues topping $9 billion
-
-
 - Shutterfly
- Coupons.com

25/05/18
https://www.investopedia.com/financial-edge/0711/5-successful-companies-that-
survived-the-dotcom-bubble.aspx
Goal: research Shutterfly and Coupons.com company
What I learned?
- Shutterfly: allow user to create prints, calendars, photo books, cards, stationary
and photo-sharing websites. Survived and successful with share price of $15.55
- Coupons.com : Steve Boal founded in 1998 and realize that coupons.com can
grow in internet economy. April, 2001 → first digital coupon. Two months later →
own website. Currently → valued $1 billion