The globe was a
one of the Internet’s first social networking sites that had great start to it
but like many .com bubble business’s it ultimately failed. There are many
reasons to why this happened but the big one that I see is that the company
went public. The reason why going public is a bad choice for a website I feel
the big reason is that it does not live up to it’s potential. A great example
of this in recent times would be Facebook. The reason why Facebook is good
example is because since it has gone public it is rumored that they have lost
millions because people are not inventing in it like they though they
would. The reason I think that
Facebook has this problem is that they are offering nothing new to the table
they do not create other projects like Google does, (some examples would be
Chrome, Glass, Nexus, and the android OS) because of this Facebook like the
globe is just strictly a social networking site causing people to be wearing of
investing in a site that is more likely to fail because it does not have
anything else to offer other than it a company that has a website to sell.
As
for how successful the dot com bubble was I think I find it to be successful in
the fact of that it help to create a whole new form of industry and help
advance technology but, over all if you look at the businesses that failed
compared to the ones that succeeded you would call this era a total flop just
because most of the original dot com bubble businesses have failed because
there were so many of the same website.
I
feel that investors have not learned their lesson from the dot com bubble but I
honestly feel that the failures from the dot com bubble will not happen again
and that is because the right now the companies that are making the products
that would start the next bubble are so big that it really would not give a
chance to any independent companies that would try to make the company because
they would either fail right away or they would be bought out immediately if
their product featured something that one of the bigger companies such as
Google, Microsoft, or Apple will just buy that company and add those features
into a new version of the product that is popular at the time. There is only
one-way though that I feel that that another bubble would for is that if there
became a completely new way to share information which I personally never see
happening because I feel that no matter what the internet will never become
obsolete.
The
effect the dot com bubble had on the market was both good and bad. The way that
this was good for the stock market is it really caused shareholders to be wise
with what to invest in when trusting a product where literally 100 of thousands
of websites are created each month. The bad from this situation is that it
caused a lot of the businesses to fail but it also cost a lot of shareholders
their money and making it hard for them to find businesses to trust to invest
in.
Some people think
that the Smartphone industry is starting to for out to be the new bubble. I personally
do not see the Smartphone industry as the new bubble for multiple reasons. The
main one is the one I stated above saying that there really can’t be a bubble
of this because the Smartphone business is pretty much run by two companies.
Those companies are Apple and Google. The reason that these companies are the
two main ones is because the have the two operating systems that are used on smart
phones, because of this the people who try and sell apps have to give part of
their profits away to either Google or Apple because they are the ones that
actually advertize and distribute the app. Because of this it makes it
impossible for their to be a bubble at this moment because it in not thousands
of companies battling to see who is the most successful it is just two well
established companies trying to make a profit.
In conclusion I
feel that a bubble is not going to appear for a long time coming due to the
fact that shareholders who invested in the dot com bubble got weeded out to
only the ones who knew what to properly invest in. Sites like Facebook, The
globe and other social networking sites also feel the wrath of the stock market
because they only have one thing to offer because of this it has not only help
prevent another bubble to start to form it has also separated the industry of
the internet into much like the motor industry in America buy making it you
have the choice from a small amount of companies who pretty much sell the same
product but each company has their own variation on it.
No comments:
Post a Comment