Internet Origins and Mosaic Browser (1993)

• Early 1993: Only 2.3% of US population online, internet difficult to use
• Mosaic browser released: First user-friendly browser showing pictures with text
• Web traffic increased 1000% within one month of Mosaic release
• Low interest rates (lowest since 1970s) made starting companies easier
• Various dot-com companies emerged: online retailers, search engines, social media

Netscape IPO and Market Ignition (1995)

• Late 1995: Netscape Communications launched Navigator browser
• Navigator faster, easier interface than Mosaic
• Netscape IPO despite losing money due to costs
• First day trading: Stock price doubled
• Market cap reached $2.7 billion in minutes (took General Dynamics 43 years)
• Inspired wave of entrepreneurs and excited investors

Internet Age Expansion (1995-1999)

• New companies: auction sites, web portals, internet radio, pet delivery services
• Companies experiencing explosive growth but non-existent profits after costs
• Banking industry convinced investors losses now = larger profits later
• Companies spending on: advertising, acquisitions, fancy offices, fat paychecks, vacations, parties
• 1999: Tech-heavy NASDAQ doubled
• Telecom and equipment companies joined, building infrastructure

Bubble Mania Symptoms (1999-2000)

• Growth at all costs tactics: selling units at loss, excessive marketing, acquisitions
• Companies adding ".com" to names for hype
• IPOs without finished products
• Investors ignored profitability and valuation metrics
• Y2K scare led to computer equipment upgrade wave
• Stocks seeing 400%, 500%, 700% returns on first trading day
• Some stocks rose over 1000% in 1999 alone
• People quit day jobs to trade stocks full-time
• Pets.com sock puppet mascot nationally recognized after months

Peak and Initial Decline (March 2000)

• March 10, 2000: NASDAQ composite hit 5,048 points
• Bubble 200x size of underlying earnings
• Index rose 500% in 5 years, would lose it all in half that time
• Federal Reserve planning aggressive monetary tightening
• Selling pressure rising after excessive spending
• Reduced demand for computer equipment and online retail

Crash and Recession (2000-2002)

• March 13, 2000: Japan recession announcement triggered NASDAQ's 4th largest loss
• Investors questioned companies' survival without tech capital
• Dot-coms burning through cash, promised profits failed to materialize
• Companies with $100M valuations became worthless within months
• March 2001: US entered recession
• October 9, 2002: NASDAQ bottomed at 1,114 points
• 77.9% decline from peak
• 415,000 IT jobs lost
• 15 years for NASDAQ to recover
• Half of dot-coms failed by 2004, others became shadows of former selves

Netscape's Fate

• Lost market share to Internet Explorer (released week after Netscape IPO)
• AOL acquired Netscape
• Company name eventually faded into obscurity

Post-Crash Internet Growth

• Internet continued revolutionizing world despite crash
• Website numbers continued growing after crash
• Currently 1.72 billion websites online