Twenty years after the Dot-Com Bubble, it seems that market analyst are calling the recent rise in technology stocks the new “bubble.”
Critics who are labelling it as a bubble cited evidence that these tech companies have yet to turn profitable while Software as a Service (SaaS) companies are still making losses while capturing market shares etc.
To begin, let us take a trip down memory lane to see how the Dot-Com Bubble unfolded:
Also known by many as the tech bubble or internet bubble, the Dot-Com Bubble was essentially a stock market bubble caused by excessive speculation in internet-related companies back in the 1990s.
This was during a time where massive adoption and usage of the internet started taking place in society.
The 1,000 percent decade-long Nasdaq rally was fuelled by low interest rates and a rush to invest in the emerging internet industry, often at any cost (sounds familiar to what we are seeing today?)