{"id":28933,"date":"2025-04-15T23:56:00","date_gmt":"2025-04-15T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=28933"},"modified":"2026-03-03T13:33:07","modified_gmt":"2026-03-03T05:33:07","slug":"dot-com-bubble","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/15\/dot-com-bubble\/","title":{"rendered":"How crazy was dot-com bubble? Companies have risen like a phoenix from the ashes"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/15\/dot-com-bubble\/#Nasdaq_index\" >Nasdaq index<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/15\/dot-com-bubble\/#Crazy_market_valuations\" >Crazy market valuations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/15\/dot-com-bubble\/#How_badly_did_it_fall\" >How badly did it fall?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/15\/dot-com-bubble\/#When_will_it_be_restored\" >When will it be restored?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/15\/dot-com-bubble\/#Famouse_companies\" >Famouse companies<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/15\/dot-com-bubble\/#Number_of_IPOs\" >Number of IPOs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/15\/dot-com-bubble\/#Top_value_company\" >Top value company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/15\/dot-com-bubble\/#The_Internet_is_not_all_bad\" >The Internet is not all bad<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/15\/dot-com-bubble\/#Companies_reborn_from_the_ashes\" >Companies reborn from the ashes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/15\/dot-com-bubble\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Nasdaq_index\"><\/span>Nasdaq index<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Crazy_market_valuations\"><\/span>Crazy market valuations<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Nasdaq was at 5,048.62 on March 10, 2000 (with an intraday high of 5,132.52), more than double its level a year earlier.<\/li>\n\n\n\n<li>During the dot-com bubble, the Nasdaq Composite rose nearly sevenfold, from 743 to a peak of 5,048.<\/li>\n\n\n\n<li>In March 2001, the price-to-earnings ratio of the Nasdaq Index was 175. On June 28, 2024, the price-to-earnings ratio of the Nasdaq Index stocks was 31.88. The P\/E ratio increased 22% compared to the trailing four quarter average P\/E ratio of 26.2.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_badly_did_it_fall\"><\/span>How badly did it fall?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In the second quarter of 2000, the <a href=\"https:\/\/en.wikipedia.org\/wiki\/Dot-com_bubble\" target=\"_blank\" rel=\"noreferrer noopener\">dot-com bubble<\/a> that had never been seen in the century began, and the September 11 terrorist attacks in 2001 caused the U.S. stock market to hover at the bottom of the crash from 2000 to 2002. The period lasted for three years, representing technology stocks and The Nasdaq index of growth stocks has fallen by up to 78%!<\/p>\n\n\n\n<p>In August 2002, the Nasdaq index barely closed at a low of 1,300, but this was not the worst time. On October 4, 2002, the Nasdaq index fell to 1,139.90, down 78% from its peak.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_will_it_be_restored\"><\/span>When will it be restored?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It will take 15 years, until April 24, 2015, for the Nasdaq to recover all the losses from its decline since 2000 and return to its peak.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Famouse_companies\"><\/span>Famouse companies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Number_of_IPOs\"><\/span>Number of IPOs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In 2000, about 500 companies were listed on the US stock market, but in 2001, the first year after the dot-com bubble, only 20 companies were listed on the US stock market.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Top_value_company\"><\/span>Top value company<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>During the US dot-com bubble in 2000, Cisco&#8217;s market capitalization peaked at US$550 billion. At that time, no one doubted that Cisco would be the first listed company in history to reach a market capitalization of US$1 trillion. But US$550 billion is the highest point of Cisco&#8217;s market value. On June 28, 2024, Cisco&#8217;s market value was only US$189 billion.<\/p>\n\n\n\n<p>Regarding the company Cisco, please see my post of &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/06\/18\/cisco-ex-largest-company\/\">Cisco, ex-biggest company, the representative of dot-com bubble<\/a>&#8220;<\/p>\n\n\n\n<p>Even blue-chip technology stocks like Intel and Oracle are down more than 80%.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Internet_is_not_all_bad\"><\/span>The Internet is not all bad<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Many famous companies that survived the bubble went on to become extremely successful businesses, proving that the Internet was not all bad. Companies that survived the bubble and later resurrected include Amazon, Electronic Bay, and Priceline.<\/p>\n\n\n\n<p>What these three companies have in common is that their business models rely heavily on the Internet. They proved to the world that the Internet bubble should not bring down everyone at once. The Internet has indeed brought convenience and benefits to the world and businesses, and has since changed our lifestyle\u2500\u2500e-commerce and cloud computing are what they are today. No, that&#8217;s an example.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Companies_reborn_from_the_ashes\"><\/span>Companies reborn from the ashes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Amazon&#8217;s stock price also fell month by month. The dot-com bubble caused the stock to fall from $113 to $5.50 per share, and the company&#8217;s stock price lost more than 95% in two years. Amazon&#8217;s market value was only US$30 billion in March 2000, but in 2018 it became the first listed company to reach US$1 trillion.<\/p>\n\n\n\n<p>Priceline was later acquired by Booking.com. For information about Booking.com, please see the introduction in my blog post &#8220;<a href=\"https:\/\/www.soocial.com\/how-does-booking-com-make-money\/\" target=\"_blank\" rel=\"noopener\">How does Booking, the lord of travel e-commerce, make money? Future Prospect Analysis<\/a>&#8220;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"100\" height=\"100\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2024\/08\/2000-Custom.jpg\" alt=\"dot-com bubble\" class=\"wp-image-28934\"\/><figcaption class=\"wp-element-caption\">credit: Gemini<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/11\/20\/crisis-by-overinvestment\/\">Economic crisis caused by overinvestment<\/a><\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/15\/dot-com-bubble\/\">How crazy was dot-com bubble? Companies have risen like a phoenix from the ashes<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/06\/18\/cisco-ex-largest-company\/\">Cisco, ex-biggest company, the representative of dot-com bubble<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.soocial.com\/how-does-booking-com-make-money\/\" target=\"_blank\" rel=\"noopener\">How does Booking, the lord of travel e-commerce, make money? Future Prospect Analysis<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/03\/sahm-rule-100-accurate\/\" target=\"_blank\" rel=\"noreferrer noopener\">Sahm Rule, a 100% accurate recession indicator, was triggered<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/06\/27\/buffett-indicator\/\" target=\"_blank\" rel=\"noreferrer noopener\">Powerful and persuasive Buffett indicator, whether market is overheat<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/25\/nasdaq-index-querier\/\">Querier to Annualized rate of return for Nasdaq Index<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/11\/17\/global-stock-markets\/\">Global stock markets performance comparision over the past 30 years in a table<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/09\/26\/market-index-and-etf\/\" target=\"_blank\" rel=\"noreferrer noopener\">Market index and the market index ETF is not identical<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/23\/sp-500-vs-nasdaq-100-index\/\" target=\"_blank\" rel=\"noreferrer noopener\">S&amp;P 500 vs. Nasdaq 100 index, how to choose a market index?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/11\/a-table-comparing-index\/\" target=\"_blank\" rel=\"noreferrer noopener\">A table comparing S&amp;P 500, Nasdaq, Dow Jones, Philadelphia Semiconductor Index over the years since its inception and annualized returns<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/05\/market-crashes-todolist\/\" target=\"_blank\" rel=\"noreferrer noopener\">Todolist when the stock market crashes<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/06\/25\/market-crash-pullback\/\">How to deal with market crash or sharp pullback?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/12\/happy-market-crash\/\" target=\"_blank\" rel=\"noreferrer noopener\">Investors should be happy when market crash<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/05\/25\/is-market-fall-enough\/\" target=\"_blank\" rel=\"noreferrer noopener\">Does the stock market fall deep enough?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/01\/10\/volatility-is-friend\/\">Market volatility is investors&#8217; friend<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/20\/2020-market-crash\/\" target=\"_blank\" rel=\"noreferrer noopener\">2020 market crash, why more retail investors than Wall Street made money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/02\/the-uncertainty-in-investment\/\" target=\"_blank\" rel=\"noreferrer noopener\">The uncertainty in Investing<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/09\/10\/wrong-investment-concept\/\" target=\"_blank\" rel=\"noreferrer noopener\">Retail investors&#8217; wrong investment concept not worth trying at all<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>During the dot-com bubble, the Nasdaq Composite rose nearly sevenfold, from 743 to a peak of 5,048. It will take 15 years, until April 24, 2015, to regain all the ground lost in the decline since 2000<\/p>\n","protected":false},"author":1,"featured_media":28934,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[830,1594,1424,44,1288,46],"tags":[227,785,499],"class_list":["post-28933","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-crash","category-bull-market","category-historical-statistic","category-index","category-indicator","category-market-index","tag-amzn","tag-bkng","tag-ebay"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/28933","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=28933"}],"version-history":[{"count":18,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/28933\/revisions"}],"predecessor-version":[{"id":40008,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/28933\/revisions\/40008"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/28934"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=28933"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=28933"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=28933"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}