The dot-com bubble was one of the times in history where
technology and the Internet seemed most promising, so investing within all of
the newly founded companies was reasonable. The Globe was unfortunately one of
those companies who got swept up in the wrong way of doing business. They
followed the crowd of other companies who were not only new themselves but in a
brand new market that people had not really dealt with before. If The Globe were to go back and do things
differently they would probably be more financially savvy, but in the long run
it is probable that their fate would not change. If The Globe were to not go
public with their stocks until after a majority of the other companies, yes
they may have been behind and their stocks worth less, but they also may have
survived the bubble bursting.
I think that investors have learned their lesson from the
dot-com bubble. People are smarter with the way that they approach technology
in today’s time since things such as the Internet and mobile devices are not
brand new to us. We understand that new items are going to come along and old
items are going to evolve, so there is a different way to go about buying the
stocks and dealing with the impact these technologies leave on our economy. I
do not find it very probable that there will be another bubble with the
technology that we have available today. As businesses grow, there are newer
and more efficient ways to increase the stock without the risk of loosing it
all.
In the long run the dot-com bubble taught people how to
handle these new technologies, but I do not find that it was beneficial. The
companies that have survived, such as Amazon, are growing rapidly every day.
This burst was most likely good for them as new and growing companies, and what
they did differently than everyone else pushed them forward. This event was
only beneficial to some and destroyed others. People and business investing in
other Internet-based businesses fueled the equity market at that time because
having a business that was not just brick and mortar was a new concept. Just
like people who wait in line for days for the newest version of the iPhone,
investors were lining up to be a part of this new break in technology.
Due to our demands as a culture for things to be faster and
better than the previous model, it may be possible to experience another
bubble. Web companies are experiencing
more and more success rather than failures in today’s times, which gives room
for a bubble to form. The stock market
regulation had profits folding then, but people always think that they can fix
things a second time around. Even though I hope that we will not repeat our
mistake, it is probable that we will at least try. Also, companies are more
reliable today than they were in the 1990’s.
Some Internet-based companies that went down with the “pop” of the
bubble had illicit business technics to begin with.
As our technology develops so do the accessories that go
with it, which creates a whole new market. The applications designed for smart
phones have been around for a few years and created a successful market that
goes hand in hand with the phones that they are designed for. They have created
a bit of a bubble for themselves, but not one that it too restricting. Apple’s
success is evident and as we plummet forward into technological advances we are
constantly reminded of that. A successful company knows that investing in
applications for iPhone’s and Androids will bring in a large cash flow, but
developing will make even more. Take the men who created the application Words
With Friends for example. They created quite a profit for themselves, but it is
probably rare that they will have as much success with a future endeavor as
they had with their first games. Companies are popping up everywhere that are
designed to only develop games just for the iPhone/Android market. I feel as
though we will see a rising trend in big game companies such as EA and Nintendo,
starting to develop more and more games for smartphones.
There are very few people today who do not have a computer
or smartphone and it is rare to walk down the street without seeing a person
chatting on their iPhone or sending an email in a coffee shop from their
laptop. With wireless Internet and 3G for phones, I think that we are getting
into the clear of escaping the bubble. This kind of technology has become too imbedded
in our lifestyle to create a bubble effect. When have made it very common in
the stock markets and I do not expect to see it take a negative effect on our
economy any time soon.
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