Oct 14, 2019
Thousands of fraud cases resulting in the imprisonments of yesterday’s top managers, dozens of suicides, $5 trillion in losses for the global economy - these are the most terrifying after-effects of the dot-com crisis. From 2000 to 2004, up to 50% of hi-tech companies went bankrupt. Twenty years ago, the world market was obviously overheating, so a financial crisis in the IT sphere was only a matter of time. Even now, some economic features indicate that stocks of such startups as Uber, Spotify, Lyft, and other IT unicorns are highly overrated.
In this article, we are going to analyze the state of the hi-tech companies global market in 2000 to figure out why the dot-com crisis was unavoidable. Then, we will consider the current macroeconomic indicators of the IT sector and predict how far we are from the next crisis. ...