Bubble Company

Filed Under » ,
Dictionary Says

Definition of 'Bubble Company'

A company whose valuation greatly exceeds that suggested by its fundamentals. The first well-documented bubble company was the South Sea Company, which caused the South Sea Bubble in 1720. A bubble company arises when speculators continuously buy up the stock in expectation of increased future earnings. However, bubble company shares often become worthless once the speculative bubble bursts.  
Investopedia Says

Investopedia explains 'Bubble Company'

One common characteristic of a bubble company is scandal. For example, during the dotcom bubble many internet-based firms traded at high multiples under the expectation of generating high levels of future growth. When earnings did not meet analysts’ expectations, many firms began to cook the books in order to manipulate their bottom lines. Once the internet bubble burst, the individual bubble companies either went bankrupt or experienced massive drops in their share prices.

Search results for

'Bubble Company'

  • What was the South Seas bubble?

    http://www.investopedia.com/ask/answers/09/south-seas-bubble.asp
    ... The bubble that started with the SSC, also ended with it. When the company failed
    to pay the incredible dividends investors had imagined, it started a chain ...

  • Hidden Value Or Hidden Bubble At Home Inns?

    http://stocks.investopedia.com/stock-analysis/2010/Hidden-Value-Or-Hidden-Bubble-At-Home-Inns-HMIN-MAR-WYN-IHG0827.aspx
    ... And if China's "bubble" bursts, then a company like Home Inns will get hit hard.
    If it does, that may be the best time to snap up these shares. ...

  • What burst the Mississippi bubble?

    http://www.investopedia.com/ask/answers/09/mississippi-bubble.asp
    ... the gold and silver standard and put it on the Mississippi Company share price ... Since
    it occurred in the same year as the South Seas bubble, the Mississippi ...

  • 5 Successful Companies That Survived The Dotcom Bubble ...

    http://financialedge.investopedia.com/financial-edge/0711/5-Successful-Companies-That-Survived-The-Dotcom-Bubble.aspx
    ... The next day, the bubble popped and one company after another imploded, fueling
    an internet sector freefall that lasted for the next two and a half years. ...

  • 5 Steps Of A Bubble

    http://www.investopedia.com/articles/stocks/10/5-steps-of-a-bubble.asp
    ... This marked the boom / euphoria stages of the bubble. Shortly afterwards, eToys
    fell 9% on concern that potential sales by company insiders could drag down the ...

  • Warning Signs Of A Troubled Company

    http://www.investopedia.com/video/play/warning-signs-of-a-troubled-company
    ... An Introduction To The Income Statement. The income statement is a measurement of
    a company's financial performance over a ... ... Read More ยป; 5 Steps Of A Bubble. ...

  • Homebuilder Stock Bubble Popped By Reality

    http://stocks.investopedia.com/stock-analysis/2009/Homebuilder-Stock-Bubble-Popped-By-Reality-DHI-PHM-KBH-TOL-LEN1006.aspx
    ... Nothing can pop a euphoria-based bubble faster than a ... Granted, the company took some
    pretty nasty write-down on existing inventory and land, but that's got ...

  • Why is Frank Quattrone credited with contributing to the growth of ...

    http://www.investopedia.com/ask/answers/09/frank-quattrone-internet-dotcom-bubble.asp
    ... spinning put the CEO's personal desire above the interests of his or her company. ...
    The total cost to investors on the internet bubble has been estimated as high ...

  • 5 Signs That Social Media Is The Next Bubble - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0111/5-Signs-That-Social-Media-Is-The-Next-Bubble.aspx
    ... The company was only founded in 2004, meaning the valuation went from zero to ... signs
    are emerging that investing in social media is reaching bubble proportions. ...

  • Priceline Returns From The Dead

    http://stocks.investopedia.com/stock-analysis/2009/Priceline-Returns-From-The-Dead-PCLN-OWW-EXPE-AMZN-MSFT-CSCO1111.aspx
    ... In 2003, the stock price dipped so low that the company did a one-for ... Below Peak
    Prices Many other stocks that rode the technology and internet bubble back then ...

Related Articles

Partner Links