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Related to dot-com: Dot-com bubble, Dot-com crash


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 ?
The dot-com bubble was in large part due to a bunch of callow young men with dollar signs for eyeballs, whose greed and naivete effectively created and destroyed an entire industry in the span of less than five years.
The crash of the dot-coms gets the media ink, but some tech-based start-ups are surviving and thriving.
In analyzing whether to sell the dot-com on credit, the credit professional must use different credit criteria.
It is amazing how many dot-coms were started during the past few years with no apparent objective beyond "having an IPO and cashing out.
It is not enough to call them employees, because in the dot-com environment they often are shareholders, managers at a young age and partners in the vision.
Nowadays, if a dot-com cannot clearly illustrate that it can make ends meet and become profitable within a reasonable time frame, investors are not interested," says Bob Curran, home building industry analyst for Wall Street investment banker Merrill Lynch.
Sanjay Baru of the Economic Times, an Indian financial paper, calls this dot-com boom the "third wave" of market expansion in the Indian media.
So, although the number of people who have been laid off represents only a small part of the overall industry, it's also true that a ripple effect is likely if the dot-com sector shrinks.
Carrying the total infrastructure development cost for e-business is likely to have a more adverse impact on a traditional enterprise's earnings than "piggybacking" on developments already in place in a dot-com.
Newspapers will reap $350 million from dot-com advertisers in 2000, a $75-million gain from 1999, according to Charlene Li, a senior analyst at Forrester Research, Cambridge, Mass.