dot-com

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Dot-Com

A business, especially a publicly-traded company, that conducts most or all of its business over the Internet. Dot-coms may conduct business in one or more of the following areas: Content, Commerce, and Connection. Content companies provide information, either for free or for a charge, and earn most of their operating income from advertising. Commerce companies sell new and/or used goods directly over the Internet. Connection companies provide Internet services directly to customers.

Dot-coms were hugely popular investments in the 1990s, with IPOs of hundreds of dollars per share, even if a company had never produced a profit and, in some cases, had never earned any revenue. This came from the theory that Internet companies needed to expand their customer bases as much as possible and thus corner the largest possible market share, even if this meant massive losses. While this worked for some dot-coms, notably Google, which did not produce a profit for its first several years of operation, the theory was unsustainable because, in a given industry, only one or two companies could corner large market shares, meaning most dot-coms were doomed to failure. This dot-com bubble burst in 2000.

dot-com

1. Of or relating to a company or the stock of a company engaged primarily in a business associated with the Internet. Amazon.com is the most obvious example of a dot-com company.
References in periodicals archive ?
Competition for workers is keen at both the emerging dot-com companies as well the traditional companies with Internet operations.
market, Delgado claims the dot-com appeal is starting to wane: "Ninety percent of those dot-com companies won't make it," he says.
But what most of NATPE's participants didn't know is what all the 150-plus dot-com companies in attendance were doing.
YOU CAN'T BUT HELP hearing and reading about dot-com companies no matter where you turn.
Green said he wants to attract more dot-com companies to Texas by providing them a tax shelter.
And for deployment, the two intend to form expert centers worldwide to assist customers such as internet service providers, application service providers, dot-com companies and end-users to deploy e- speak on Oracle 8i.
Part of the drop in demand was blamed on the folding of several dot-com companies, Goodner said.
Despite concerns about the economy and the struggles among dot-com companies, the worldwide IT services market is projected to grow from $665,870 billion in 2000 to $1.4 trillion in 2005, according to Dataquest Inc., a unit of Gartner, Inc.
Instead, they waited in the wings, learning from the successes and mistakes of hundreds of dot-com companies, many of which have since fallen out of favor with Wall Street investors.
These days, papers are full of the demise of dot-com companies that were the IPO darlings of a year or two ago.
"I think we are starting to hear about businesses like law firms, advertising and public relations firms, that have staffed up to support dot-com companies," Bernstein said.
Toy manufacturer Hasbro has introduced a new edition of the classic board game Monopoly, featuring dot-com companies in place of the traditional 'bricks and mortar' properties.