A Look Back At Ten Dot-Com Flops 463
climbing_monkey writes "CNET.com has posted what, in their opinion, are the top 10 dot-com flops." From the article: "The most astounding thing about the dot-com boom was the obscene amount of money that was spent. Zealous venture capitalists fell over themselves to invest millions in Internet start-ups; dot-coms blew millions on spectacular marketing campaigns; new college graduates became instant millionaires (albeit on paper) and rushed out to spend it; and companies with unproven business models executed massive IPOs with sky-high stock prices. Of course, we all know what eventually happened to this world. Few of these companies actually made enough money to recoup that cash, and when their investors fled to the hills, these start-ups died dramatic deaths. These are the celebrity victims of the new-economy bust."
BELO! (Score:2, Informative)
Ahh, eToys... (Score:4, Informative)
Re:Boo.com and its Mac support (Score:2, Informative)
drkoop.com (Score:3, Informative)
Ol' C. Everett just didn't know what he was getting into.
eToys entry is inaccurate (Score:1, Informative)
From their own FAQ,
I heard that eToys is under new ownership. What does this mean?
You'll continue to enjoy shopping our incredible selection of popular toys and video games, unique learning toys and hard-to-find specialty toys at eToys. The only changes are behind the scenes. The company that owns and operates eToys separated from KB Toys, Inc. on May 10, 2004 after a management buyout. Our new company name is eToys Direct(TM), Inc.. The staff that made eToys one of the most popular online destinations for toys and video games continues to operate the eToys web site.
What is the relationship between eToys and KB Toys?
eToys is no longer a part of KB Toys, Inc. Our new company name is eToys Direct(TM), Inc.
Re:Marketing (Score:3, Informative)
Most people didn't even know what the Internet was, nor that it existed, back in 1990. That was so early in Internet time, it was still before the period when most people were actually proud that they didn't know how to use a computer.
Ah, memories.
Re:I got caught two ways (Score:2, Informative)
It's a bubble, just like the stock market bubble that partially blew in 2000. And it's the only thing keeping the US economy up. When it ends, a massive depression will follow - there's no way out from it.
And yeah, buy something at the high prices now. when it drops 50%, how can you sell and not be underwater? you'll be screwed
Number 7 (Score:3, Informative)
I am typing on that keyboard right now. Yes, it is hellishly loud, but the feel of the keys is unmistakable, and I never, ever have problems with keys sticking, or not responding, or any of the things I hate about almost every other keyboard I've ever used. Plus, the key caps come off easily, and most are interchangeable... This is fun. My little sister is perpetually confused by the arrow keys (point in opposite directions), and most people have a hard time with the swapped F-key row and numeral row.
But, suffice it to say, this 12 year old keyboard is the most beloved and probably most irreplaceable part of my computer today.
Re:There's a difference with real estate (Score:2, Informative)
The problem is people are relying heavily on ARMs and cashing out their equity [cnn.com] resulting in them being upside down [cnn.com] on their investments.
Think about the conditions that led up to the Great Depression, i.e. everyone trading on margin with no way to pay it off = people overextending their credit to buy houses now. And, the old adage (supposedly attributed to Joseph Kennedy) that when shoeshine boys start talking about the market, it's time to get out (which turned out to be true in the dot-bomb era too, although it was waiters and barbers who did the talking). Nowadays, everyone's talking about real estate.
Those who ignore the lessons of history are doomed to repeat it. I see a world of hurt coming to the housing market soon, especially as interest rates inevitably rise, even on the 30 year termed debt instruments.
Would I invest in real estate now, especially as I live in the DC area, which Mr. Greenspan specifically identified as having "froth", no way. Am I happy that I did 4 years ago, the answer is an unqualified yes.
Value America (Score:3, Informative)
J. David Kuos "Dot.Bomb" was a brillantly written account of how to burn an extra-ordinary amount of money by doing some of the most astonishingly idiotic business decisions ever.
Very, very good read. Highly recommended.
Re:I blame Bob Metcalfe 8^) (Score:3, Informative)
Some clues as to how out of touch he has been in the last decade:
1) In the late 90s, he kept on predicting that a wholesale "collapse" of the internet was right around the corner. Just like the jesus-freaks proclaiming doomsday was upon us - the date of the collapse would come and go and he would just pick a new date about a year or so ou - lather, rinse repeat.
2) Lost a power struggle for control over 3com, the company he founded. Pretty much got the boot to the ass and hard, after which the company grew phenomenally. Not a good indicator for his business acumen.
3) Insists that metered by the byte internet access is the only viable business model for internet connectivity.
4) Actually thought up and uses the phrase "open sores" to refer to open source software. As in a bunch of stoned commie hippies who can't even take care of themselves well enough to prevent outbreaks of open sores on their skin.
~25 years ago, the guy's role in the techincal development of ethernet was crucial to the birthing of the internet. But he just does not have the flexibility of mind to comprehend the way the net has changed and continues to change the nature of business.
FWIW:
I went to google for supporting links for each point above, starting with #4, the "open sores" bit and I found little evidence. I distinctly remember his columns in infoworld on the subject, but they must all be roadkill now (or off-limits to google). I hit the wayback machine too and got nothing, after which I figured it wasn't worth the effort to even try for other points. I kinda wonder if its a conspiracy to keep the public record from showing his true colors or just dumb luck on his part.
Heres one (Score:2, Informative)
Re:There's a difference with real estate (Score:3, Informative)
you need to find an investment that would outperform real estate appreciation
That's not very hard to do, especially when the housing market is in a bubble. Or, trivially, you could get an equal investment to real estate, and invest the money in...real estate!
you need two sets of money: one to pay your rent with, and one to invest with.
What, so it isn't all combined on one easy to read statement so you can't do it? I never said a trained monkey could do it. Some people don't know how to save. For them, maybe forcing them to save through a mortgage makes sense. But what would make more sense is teaching them how to save in the first place. To buy a $150,000 condo equivalent to my $750/month apartment I'd have to pay at least $1250/month in mortgage payments, PMI, property taxes, repairs, and homeowners insurance, plus $15,000 down. That $15,000 plus $500/month can grow quite nicely when invested properly. In the end, it comes down to a matter of which do I think will appreciate more, the housing market or the stock market. I think the housing market is overvalued right now compared to the stock market, so that's where I'm putting my bets.
And 10 years? Come on, within a year of purchasing my last house (haven't checked the value on this one), it had appreciated enough to cover all my closing costs. Within 5 years it appreciated enough so I could use the profits to make almost 40% downpayment on my current house.
You got lucky. You entered at a time when housing prices were soaring. But there's no way to know whether that's going to continue or not. One year from today home values may be down, not up. Sometimes home values grow faster than other investements. Sometimes they don't. Making a blanket statement that it's almost always better to own a home is incorrect, especially in today's housing market.
Yes, not everyone is better off buying, but from what I've seen, most people who could afford a house would be better off doing so.
Better than what? You're making way too broad of a statement. In hindsight, can you point to a home that a person could have bought which would have been better financially than investing in some random investment (say the S&P 500 index) and renting from some random landlord? Sure. But if you have the benefit of hindsight, why not just invest in Google?
What does it mean to be able to afford a house? Obviously you don't mean that they can afford to pay cash for the house. But if you include mortgages, then just about anyone can afford a house. The only real question is how high an interest rate they're going to get. If you haven't declared bankruptcy, and aren't in default on any loans, you can get a mortgage, and if you're willing to pay a high enough interest rate and PMI, you can even get a fixed rate mortgage.
Re:Hardly Accidental (Score:3, Informative)
Here's a free clue: IRAs and 401Ks do not have pension managers! IRAs and 401Ks are managed by individual owners. So by your own statement, you're totally wrong.
There is no such fund as "Fidelity Vantage", but I bet that if you read the prospects for the fund you're thinking about you'll find that it told you that there is risk in the stock market. A 16% loss hurts, but it's hardly being wiped out.
I'm sorry you were too stupid to get out before the bubble burst, but its not like there wasn't plenty of warning that it was going to happen. Stop blaming Bush for your own personal failings.