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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.


1. Of or relating to a company or the stock of a company engaged primarily in a business associated with the Internet. is the most obvious example of a dot-com company.
References in periodicals archive ?
com), six top DotComs selling a general selection of titles were elected (see Table 3-1).
But "with dotcom valuations as dreadfully low as they are these days," says Rachel Terrace, an analyst with Jupiter Media Metrix, a New York City-based research group that studies Internet commerce, "equity in PlanetOut is virtually worthless.
Petesch sees dotcoms as ticking time bombs of employment-related lawsuits.
DOTCOM companies have come in for a hammering from surveys which have highlighted their pitfalls.
Mr Atkinson said: 'Having completed the healthcheck, investors must make sure that the dotcoms have a process in place that supports the on-going management of intellectual property.
This again presupposes that the dotcoms are expanding the market for licensed merchandise-a market which, as reflected in the new edition of "The Licensing Letter Databook" (EPM), has been largely flat in the U.
As any website development company will tell you, there is a certain type of dotcom wannabe.
Find yourself on the street after that dotcom experience?
As the Nasdaq continues to outperform traditional economic indices, dotcoms are garnering more venture capital and greater visibility.