In the late 1990s, the Internet bubble, also known as “Dotcom” (like the ending of a website URL) fueled the rapid growth and funding for Internet companies like Amazon, Yahoo and AOL 🚀

Bubbles are very hard to recognize when you’re inside one, but once it pops, the bubble often seems obvious 🛁

So, here were some of the warning signs 👉

Since many products were very similar to each other, companies spent up to 90% of their budget on advertising.

📣 Always look out for when bad companies getting lots of funding!

Investors overlooked the fundamentals and failed to diversify!

By 1999, almost 40% of all venture capital investments were going towards Internet companies 🕸

The bubble began to pop once investors noticed that most Internet companies were not profitable ❌💸

And soon the rocket-high valuations with nothing to back it crumbled!

Famous companies that managed to survive the crash include Amazon and eBay

But many young Dotcom startups were incinerated while public ones fell off the markets.

Major stocks like Oracle Cisco and Intel lost more than 80% of their market cap!

The Nasdaq, which tracks tech stocks, took 15 years to regain its peak before the crash ⛰️