Is Dot-Com Bubble Back Again?

In the period of 1997-2000, Internet companies had become the favorites of investors. Despite incurring losses, they were highly valued because of their wide scope. This was the dot-com bubble and it burst on 6 April, 2000 with NASDAQ suffering an over $1 trillion loss in market value.

Now, 15 years later, a similar scenario is forming again. This time, it is not just in US, but also in Asia’s third largest economy, India. Tech investors, all over the world are queuing up to invest in Indian e-commerce firms. At the same time, NASDAQ also climbed above 5000 points for the first time since the Dot-Com boom. Rising valuations, massive losses and ambitious promises of future growth are some of the other similarities that can be drawn.

The following article by Shrutika Verma and Mihir Dalar at livemint.com, talks about the e-commerce frenzy in India today and draws its parallels with the Dot-Com Bubble. This article also cautions that this e-commerce boom should not meet the same fate.