| Product: |
The future of the .com industry |
| Date: |
27/01/01 (22 review reads) |
| Rating: |
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The .com industry has been performing very under par, which is a contrast from the explosive start most companies had in 1999. The likes of Freeserve were trading at 127p what a bargain, after reaching £9. It just shows the fall of the technology sector has taken, as a result most of the other shares in the FTSE 100 have suffered along with them, with the exception of the banks.
However, I don’t think it’s anything to worry about, in the long term the markets will be stronger for it. It was only going to be a matter of time before the bubble burst, the market wouldn’t have been able to sustain the technology’s sector growth for much longer anyway.
Hopefully, this year will be better and both the old economy stocks and technology sector will stabilise, most of the companies in the FTSE 100 hit their yearly lowly, and although there were some great bargains, I am sure millions must have been knocked of the value of shares.
The .com industry was in many ways once in a life time phenomenon, I don’t think that a sector will quite go off like this again, if you were in then you would have made a good profit, but if you weren’t then you missed out. However, the problems of the .com companies and one of the reasons that some went bust, was that they were over-valued greatly and had nothing to back up their companies worth. It was the companies who had backing, a profit history and one that could diversify that only suffered a lot.
As a sector I think that the .com companies will stabilise but I don’t think they’ll reach their high’s again in the short terms time, it will take time and hard work.
A good stable .com sector will have a good stabilising effect on the rest of the shares which will mean good stable growth. I don’t think the .com industry will go bust, some of the companies which were ‘not up to the job’ so to speak have been got rid off which
can only be good.
Summary:
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Last comment:
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aratherbadusername - 27/01/01 The trouble is that the media hype it up beyond proprotions that are actually sustainable.
People then jump on the bandwagon adnjump off almost straight away.
If this didn't happen they would have a better chance of survival. |
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