Glossary entry

English term or phrase:

high tech bubble

English answer:

temporary heated market for shares in high-tech firms (esp. Internet start-ups)

Added to glossary by Sophia Jusoff
Apr 20, 2005 17:06
19 yrs ago
1 viewer *
English term

high tech bubble

English Bus/Financial Business/Commerce (general)
Because our share price has declined since the high-tech bubble of a few years ago, our company has a large number of outstanding stock options.

I need to know what "high tech bubble" is exactly.

Responses

+4
29 mins
Selected

temporary heated market for shares in high-tech firms (esp. Internet start-ups)

bubble meaning that it would pop, ie burst; that of course wasn't necessarily the case. If not for the Microsoft antitrust suit, it might not have happened, ie the bubble may not have burst the way it did. But that, that is an opinion...

It simply means that it was a short-term phenomena, the interest and share valuations in high-tech firms.

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Note added at 31 mins (2005-04-20 17:38:06 GMT)
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the Confidence was supposed to be 5, but then with this hi-tech webpage, it changed itself to 3 (unsure)
Peer comment(s):

agree Crio
1 min
Thanks!
agree MPGS : :) ... :)
33 mins
Thanks!
agree Java Cafe
6 hrs
Thanks!
agree SirReaL
13 hrs
Thanks!
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4 KudoZ points awarded for this answer. Comment: "Thank you all. "
+7
3 mins

rapid growth in the number high technology companies of a few years ago

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Note added at 5 mins (2005-04-20 17:12:21 GMT)
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as always in economics very fast growth is usually accompanied by a period when growth is very slow or even negative - hence the word bubble - bubbles can burst

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Note added at 11 mins (2005-04-20 17:18:07 GMT)
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because of this tendency, whenever an economy or a sector of the economy starts expanding rapidly, people are always concerned that once the rapid growth stops, the bubble will burst and problems such as mass layoffs and bankrupcy will set in
Peer comment(s):

agree Tony M : ... and in the high-tech industry in general
4 mins
agree juvera
4 mins
agree Elizabeth Lyons
16 mins
agree Robert Donahue (X)
1 hr
agree RHELLER : right now - we speak of the real estate bubble (field can change)
1 hr
housing market boom on the other side of the pond :)
agree Alfa Trans (X)
11 hrs
agree SirReaL
13 hrs
neutral Charlie Bavington : strictly speaking, it was more the rapid growth in share price, which then attracted new entrants of course (economic theory tells us to expect this), but the bubble starts with the stock price, not the number of companies per se....
17 hrs
well, you could take that argument further, to say that the stock price depends on factors X,Y,Z and it is in fact changes in those factors which start off the process. I'm just trying to find a simple (yet correct) answer for the asker here.
neutral Refugio : agree with Charlie, it is not just rapid growth but unsustainable and unrealistically rapid growth, devil take the hindmost
2 days 11 hrs
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-2
11 mins

hi-teck boom

since the high-tech boom of a few years ago
Peer comment(s):

disagree humbird : But the boom didn't stay. It ended in burst, thus bubble.
3 hrs
thank
disagree Charlesp : this would be actually an antonym, and not an antagonym
14 hrs
thanks
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+3
7 hrs

hyper-accelerated unsustainable speculative growth in the high-tech industry

....particularly in the dot.com companies. Bubbles are created in markets by irrational speculation and when new money fails to come in to support continue the growth the bubble bursts, resulting in weak companies disappearing and the strong surviving (Amazon, Yahoo, Ebay).
Peer comment(s):

agree SirReaL
5 hrs
thanks, Mikhail
agree Charlie Bavington : yep, good description.
9 hrs
thanks, Charlie
agree Refugio
2 days 3 hrs
thanks, Ruth
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