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What was the difference between the dot com crash and the telecom crash?


Asked by Larry Sanders on Dec 01, 2021 FAQ



It is sometimes confused with the Dot Com crash which happened at around the same time. Unlike the dot com crash however, the telecoms sector relied on long engineering research and development cycles, and the development companies on the telecom operators buying software maintenance contracts and upgrade paths.
Moreover,
When it comes to stock market bubbles, the dotcom crash is one for the ages. Unlike other financial bubbles, the dotcom bubble seemed like a sure thing.
In this manner, Dot-Com Bubble Set Up Dot-Com Crash of 2000-2002. The Internet commercialized in 1995, creating a speculative bubble from 1997 to 2000. Hype over a new industry caused investors to overlook traditional metrics like the price-to-earnings (PE) ratio, debt/equity ratio, and amount of free cash flow. People quit their jobs to become day traders.
Indeed,
The dotcom bubble, also known as the internet bubble, was a rapid rise in U.S. technology stock equity valuations fueled by investments in Internet-based companies during the bull market in the late 1990s.
And,
Priceline Group Inc (NASDAQ:PCLN) is another high-flying Internet stock that survived the dotcom crash. Discount travel web site, Priceline.com was founded in 1998, and allowed users to name their own prices on airfares, car rentals, vacation packages etc.