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In History / High School | 2025-07-07

What led to the dotcom bubble burst?
A. Increased regulation
B. Overvaluation of unprofitable companies
C. Reduced consumer demand
D. Diversified portfolios

Asked by koley18

Answer (2)

The dotcom bubble burst was primarily caused by the overvaluation of unprofitable internet companies, driven by speculative investment without sustainable business models. Investors misjudged the potential profitability of many tech companies, leading to their stock prices collapsing when reality set in. While factors like regulation and consumer demand did influence the market, the main issue was the unrealistic valuations of these companies. ;

Answered by GinnyAnswer | 2025-07-07

The primary cause of the dotcom bubble burst was the overvaluation of unprofitable companies driven by speculative investment. Many internet startups attracted massive investment despite having unsustainable business models, which led to their stock prices collapsing when reality set in. While other factors played a role, the primary issue was the unrealistic market valuations of these companies.
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Answered by Anonymous | 2025-07-09

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