Definition of 'Internet Bubble'
A rapid rise in equity markets caused by speculation into online-based companies (referred to as dotcoms).
The internet bubble of the late-1990s is often considered a benchmark case of investors abandoning fundamentals in their search for the next big thing. As consumers flocked to the internet, investors were afraid that not becoming involved would be a huge missed opportunity. Venture capital companies and speculators poured money into internet startups during the 1990s in the hope that those companies would one day become profitable.
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