Dotcom

What is a 'Dotcom'

A Dotcom is 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.

RELATED TERMS
  1. Dotcom Bubble

    A rapid rise in equity markets fueled by investments in internet-based ...
  2. Siliconaires

    Slang referring to young dotcom entrepreneurs in their 20s and ...
  3. Business Model

    The plan implemented by a company to generate revenue and make ...
  4. Business To Consumer - B To C

    Business or transactions conducted directly between a company ...
  5. Commercial

    Relating to commerce. In the investment field, the term "commercial" ...
  6. Nonprofit Organization

    A business entity that is granted tax-exempt status by the Internal ...
Related Articles
  1. Trading

    Why Social Media Isn't Like The Dotcom Boom

    Many investors see social media stocks as a bubble waiting to burst. Find out why they're wrong.
  2. Investing

    How To Value An Internet Stock

    An academic study, published several years after the peak of the dot-com bubble in March 2000, accurately described just how whacky internet valuations grew until the bubble burst. The study's ...
  3. Markets

    3 Large-Cap Stocks That Are Still Far From Their Dot-Com Bubble (CSCO, INTC)

    Review three large-cap technology stocks that were among the biggest names in the sector in the dot-com era but are still far from their highs in 2000.
  4. Markets

    Tech Bubbles: How the Dot-Com Era Differs From 2016 (AAPL, CSCO)

    Pay attention to the escalating valuations of pre-IPO companies in 2016, as several will rise above the $10 billion level before going public.
  5. Professionals

    How To Make Money With Domain Names

    Domain names are hot commodities in today’s tech-centric world, and for good reason.
  6. Markets

    Failed IPOs Of The Dot-Com Bubble

    We look at some of the most infamous flops of the first dot-com bubble.
  7. Retirement

    IPO Basics Tutorial

    What's an IPO, and how did everybody get so rich off them during the dotcom boom? We give you the scoop.
  8. Managing Wealth

    The Pros and Cons of Being a Nonprofit

    Evaluating the tradeoffs organizations face when choosing between becoming a tax-exempt nonprofit or for-profit business with innovative ease.
  9. Entrepreneurship & Small Business

    How to Pick a Winning Name for Your Business

    Many entrepreneurs are big picture people and have a hard time choosing a company name. Here are two major strategies for naming a business.
  10. Managing Wealth

    Hybrid Business: Rise of Nonprofits in Private Sector

    Businesses are embracing a mutually beneficial partnership wherein the ideals of the nonprofit sector are coupled with profit motive and capacity to scale.
RELATED FAQS
  1. What lessons did the tech bubble crash give to investors in the Internet sector?

    Learn how investors contributed to the dot-com bust and how Internet services and investing has changed since the market ... Read Answer >>
  2. How has investing in the Internet sector evolved over time?

    Learn how early investors of the Internet sector received a valuable lesson and influenced modern-day markets after the dot-come ... Read Answer >>
  3. What average annual return has the internet sector historically generated?

    Learn about the performance of Internet stocks, one of the newest types of investment sectors, and discover how stock bubbles ... Read Answer >>
  4. Do nonprofit organizations have working capital?

    Discover why financial reserves in the nonprofit world are equivalent to working capital used by for-profit businesses, and ... Read Answer >>
  5. 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 Answer >>
  6. How can retail investors invest in commercial paper?

    Find out how individual retail investors can purchase short-term commercial paper, but why it rarely makes good investment ... Read Answer >>
Trading Center