Tech bubble

From Wikinfo

In February 2000, stock prices for e-business and "Dot-com" companies started to fall. Many companies had very weak and optimistic business plans, failed to raise renewed funding, and had to lay off workers and close down operations.

In Europe the vast amounts of cash the mobile operators spent on 3G-licences in Germany and Italy for example led them into deep debt. The investments were blown out of proportion regardless of whether seen in the context of their current or projected future cash flow, but this fact was not publicly acknowledged until as late as 2001 and 2002. Due to the highly networked nature of the IT industry this quickly led into problems for small companies that were dependent on contracts from operators.

The downtrend first reached the highly specialized "dotcom" companies, but soon spread to computer manufacturers, telecom, and industry in general.

Contents 1 See also 2 Further Reading 3 External link 3.1 References

See also

• Dot-compost

Further Reading

• David Denby, American Sucker, Little Brown and Co, January, 2004, hardcover, ISBN 0316192945

External link

• Fucked Company - A parody on Fast Company, a leading magazine of the New Economy era, the website started to list crashing enterprises with the number of layoffs.

References

• Adapted from the Wikipedia article, "Tech_bubble" http://en.wikipedia.org/wiki/Tech_bubble, used under the GNU Free Documentation License