Dotcom

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DEFINITION of 'Dotcom'

A company that embraces the internet as the key component in its business. Dotcoms are so named because of the URL customers visit to do business with the company, e.g. www.Amazon.com. The "com" stands for "commercial." By contrast, websites run by companies whose primary motivations are not commercial, such as nonprofit companies, often have domain names ending in ".org," which is short for "organization."

BREAKING DOWN 'Dotcom'

The dotcoms took the world by storm in the late 1990s, rising faster than any industry in recent memory. Despite the fact that most internet companies were losing money at alarming rates, they were given huge valuations on the stock market - but it didn't last for long. The Nasdaq surged to a historical high in March of 2000, and within a few years most of the dotcom sector was wiped out.

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RELATED FAQS
  1. What did Knight Trading Group do to incur a $1.5 million fine for violating trading ...

    The dotcom boom accelerated many deceitful business practices that first became apparent during the '80s and '90s. Many of ... Read Full Answer >>
  2. Why did dotcom companies crash so drastically?

    The craze of the dotcom bubble and the flood of capital that came with it led to many back-of-the-napkin business models ... Read Full Answer >>
  3. What's the difference between old- and new-economy stocks?

    Old-economy stocks represent large, well-established companies that participate in more traditional industry sectors and ... Read Full Answer >>
  4. How can I invest in electronic retailing (e-tailing)?

    Electronic retail is one of the fastest growing segments of the economy. Every year, more people are choosing to purchase ... Read Full Answer >>
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