Dotcom Bubble: The Stocks You Wish You'd Bought

It's been 25 years since the dot-com bubble burst, and the lessons learned from that era continue to shape investment strategies today. The dot-com bubble, characterized by extreme optimism and irrational exuberance, saw a rapid rise in technology stock valuations fueled by investments in Internet-based companies. The Nasdaq index, for instance, rose from under 1,000 to more than 5,000 between 1995 and 2000, only to tumble 77% by October 2002. This crash left many investors facing steep losses and several Internet companies going bust.

However, not all companies from that era met the same fate. Some have shown remarkable resilience and growth over the past 25 years. These companies not only survived the dot-com bubble but also thrived in the years that followed. Let's take a closer look at some of the stocks that have shown the most resilience and growth, and what factors contributed to their success.

One of the most prominent companies from the dot-com era is Amazon. Amazon, for instance, has grown from an online bookstore to a global e-commerce giant, offering a wide range of products and services, including cloud computing through Amazon Web Services (AWS). As of 2024, Amazon is one of the "Magnificent Seven" (M7) stocks, which are associated with the continued growth of technology, especially the potential for mass adoption of artificial intelligence (AI). Amazon's success can be attributed to its strong business model, continuous innovation, and ability to adapt to changing market conditions.

Another company that has shown resilience and growth is eBay. It started as an online auction site and has since expanded its services to include eBay Marketplace, StubHub, and eBay Classifieds. eBay's success can be attributed to its unique business model, which allows individuals and businesses to buy and sell goods online, and its ability to adapt to the changing e-commerce landscape.

Priceline, now known as Booking Holdings, is another company that has shown resilience and growth. It started as an online travel agency and has since expanded its services to include hotel bookings, flight reservations, and car rentals. Priceline's success can be attributed to its innovative business model, which allows customers to bid on travel services, and its ability to adapt to the changing travel industry.

The factors that contributed to the success of these companies include their strong business models, continuous innovation, and ability to adapt to changing market conditions. These companies were able to pivot and expand their services to meet the evolving needs of their customers, which allowed them to maintain their competitive edge and continue to grow. Additionally, these companies were able to leverage technology to improve their operations and customer experience, which further contributed to their success.



In conclusion, the dot-com bubble era provides valuable lessons for investors today. The importance of valuations, the real potential of underlying technology, and the need for cautious investment strategies are all key takeaways from that era. By learning from the past, investors can make more informed decisions and navigate the current market landscape more prudently.