The Dot-Com Bubble: An Analysis of Economic Impact and Players

This essay provides an analysis of the Dot-Com bubble, examining its origins, impact, and key players in the late 1990s. It explores the surge in internet-based companies and their dependence on the internet for promotion and publicity, with specific focus on the role of Facebook, Twitter, LinkedIn, and Groupon. The essay references the impact of the bubble on the stock market and how the internet has transformed the way of life. It also includes references to academic sources such as DeLong and Magin, Brunnermeier and Nagel, Griffin et al., and Ofek and Richardson. The essay also includes a warning about the internet propaganda and the risks associated with investments.

Running head: RESEARCH BLOG ESSAY
RESEARCH BLOG ESSAY
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RESEARCH BLOG ESSAY
The Dot-Com bubble or tech bubbles has a significant impact on everyone lives. It plays
an essential role in shaping the daily lives in today's internet-centric world. The widespread use
of the Dot-com bubble has been witnessed from the late 1990s when the world was experienced
massive growth in adopting the internet as the primary mean of life(DeLong and Magin 2006).
The Dot-Com bubble is a stock market bubble, caused by internet marketing companies
for their excessive speculations. It is referred to as the period from 1995-2000, when the internet-
based companies are pumped by the investors, hoping their profitability shortly(Brunnermeier
and Nagel 2004). It was the time when companies have started depending on the internet, either
for the promotion of the concerned service or products or for their publicity(Griffin et al. 2011).
This is because a vast population of the world started using mobile phones, computers, etc. and
spending most of their time over the internet. Hence, the internet became the easiest and
convenient source of publicity during that period. For all those internet-users, (both for
promotion or for information), the Dot-Com bubble arrived like a wave to the web-world (Ofek
and Richardson 2003)
The four players who have contributed much to the surge of dot coms are Facebook,
Twitter, LinkedIn and Groupon. New technology is consistently creating a bubble in the internet-
world. Although it provides an easy and convenient platform to communicate and get in touch
with the people through social media, etc., one should not be caught up in the internet
propaganda while making any investment.

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RESEARCH BLOG ESSAY
Reference
DeLong, J.B. and Magin, K., 2006. A short note on the size of the dot-com bubble (No.
w12011). National Bureau of Economic Research.
Griffin, J.M., Harris, J.H., Shu, T. and Topaloglu, S., 2011. Who drove and burst the tech
bubble?. The Journal of Finance, 66(4), pp.1251-1290.
K. BRUNNERMEIER, M.A.R.K.U.S. and Nagel, S., 2004. Hedge funds and the technology
bubble. The journal of Finance, 59(5), pp.2013-2040.
Ofek, E. and Richardson, M., 2003. Dotcom mania: The rise and fall of internet stock prices. The
Journal of Finance, 58(3), pp.1113-1137.