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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.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
“And to be here for the beginning of the second wave of dot-coms, remembering what we all learned back in 2001, creates an incredible opportunity for dot-com entrepreneurs and The Idea People to partner to create strong, vibrant, niche-oriented Internet business models that can be successful for the long run.”
"You and your friends will become dot-com CEOs with great funding and terrible business sense," reads the ad copy.
The failure to do this was the biggest culprit in the dot-com collapse.
Basically an extended version of the site, F'd Companies is a compendium of New Economy stupidity, an incredulous chronicle of some of the biggest dot-com failures.
This is a shame, because the Bay Area in the clutch of dot-com mania was a subject worthy of Tom Wolfe or Norman Mailer or Ian Frazier.
For the vendor selling to the dot-com, the capital structure is not like a "bricks-and-mortar" enterprise that relies on bank financing or internal financing to operate.
Think Warren Buffett: He never got involved with the dot-coms, and he came out better than everyone."
By the beginning of the summer, 64,983 dot-com employees had been laid off in 2001--compared to 3,315 dot-com layoffs from January through May 2000.
Buildscape lays off 50 as the dot-com downturn worsens.
Initially, a typical dot-com focused on a business that was susceptible to a particular business risk, but as the Internet bubble expanded, being able to manage business risk became a trump card.