The January 2000 Super Bowl football championship was probably the clearest sign of an impending crash, with the broadcast overrun by dot-com commercials. The index surged from 3,000 to above 5,000 in four months. The early 2000 rise of the Nasdaq composite was meteoric and, in retrospect, absurd. Google Inc and Inc, which went public in 2004, have seen their shares more than quadruple. These include companies such as Apple Inc, Inc and Research in Motion Ltd, which have products that defined their category. Shares of select tech names have thrived over the past decade. Tech stocks by and large are pretty comparable to other stocks.” “We learned a lot about the flaws in that logic. “Tech stocks were once viewed as unique and different, an industry that would grow rapidly and support extraordinarily high valuations,” said Ken Allen, portfolio manager at T. Today, the Nasdaq index rests at less than half its peak, and many of the biggest names from 2000 - IBM, Hewlett-Packard and Microsoft - are trading more like traditional stocks, based on their fundamentals.įinding the growth stocks, the companies of the future, has become trickier, investors say. REUTERS/Lucas Jackson/FilesĪnalysts and venture capitalists say the tech crash taught investors a seemingly simple lesson that had been lost in the flurry of public stock offerings by Silicon Valley start-ups with not a scrap of revenue - sales and profits, or at least the prospect of profits, matter. Ten years ago today, before the dot-com bubble burst, the Nasdaq composite index hit a record 5,132.52 points - a peak that the technology-heavy market shows no sign of scaling again any time soon. A NASDAQ screen is seen above Times Square in New York in this Septemfile photo.
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