New dot com boom! Invest money or not?

Started by Bukvarix, Jul 05, 2022, 04:42 AM

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BukvarixTopic starter

I think that you have noticed prices increasing for 2-3-4 L in the com zone. After 10 years of oblivion, prices made a sharp jump up.
Over the past year, prices for 2 letters have increased from real 200K to 500K
3-letter price from 10K to 25K
Price of 4-letter from $50 to $250 minimum.

From my point of view there are 3 reasons for this:
1. Chinese investors.
2. Growth of the American market(s)
3. Disappointment in thousands of new domain zones.

Well, a fact is a fact. Prices are rising. I have my own vision of the situation, but it's interesting to know what everyone thinks.


All factors take place.
Perhaps everything is quite simply explained, over time, "2-3-4 L in .com" go out of free circulation on the market, in other words, there are more and more companies and projects, and there are fewer and fewer options in .com. The price goes up accordingly.

As a result, the further, the more dot com IS King!


You should additionally take into account such a factor as the growth of online services and online stores during and after the problems of 2020. The state of the labor market showed the relevance of remote options for earnings and service. Working remotely turned out to be more profitable than a daily stay in the office. And ordering products and medicines with delivery through the network is safer. I think this is what determined the increase in prices for domain names.


Many investors were eager to invest at any valuation, in any dotcom company, especially if it had one of the Internet-related prefixes or a ".com" suffix in its name. Venture capital was easy to raise. Investment banks, which made significant profits from initial public offerings (IPOs), fueled speculation and encouraged investment in technology.
The combination of rapidly rising stock prices in the quaternary sector of the economy and confidence this companies would make future profits created an environment in which many investors were willing to ignore traditional indicators such as the price/earnings ratio and base confidence on technological advances leading to a stock market bubble.
From 1995 to 2000, the Nasdaq Composite stock market index grew by 400%. The price-to-profit ratio has reached 200, which is significantly higher than the peak price-to-profit ratio of 80 for the Japanese. Nikkei 235 During the asset price bubble in Japan in 1991.ualcomm shares rose in price by 2,619%, 12 other large-cap stocks rose in price by more than 1,000% each, and seven additional high-cap stocks rose in price by more than 900% each. Even though the Nasdaq Composite rose 85.6% and the S&P 500 index rose 19.5% in 1999, more stocks fell in value than rose in value as investors sold shares of slower-growing companies to invest in Internet stocks.

During the boom, there was an unprecedented amount of personal investment, and stories of people quitting their jobs to trade in the financial market were commonplace.
The media took advantage of the public's desire to invest in the stock market; an article in Wall Street Magazine suggested this investors "rethink" the "bizarre idea" of profit, and CNBC reported on the stock market with the same level of expectation as many networks provided to broadcast sports eventsюю

At the peak of the boom, a promising dotcom company could become a public company through an IPO and raise a significant amount of money, even if it never made a profit or, in some cases, brought material income. People who received employee stock options instantly became paper Millionaires when their companies held an IPO; however, most employees were prohibited from selling shares immediately due to lockdown periods. The most successful entrepreneurs, such as Mark Cuban, have sold their shares or signed hedges to protect their achievements.


Indeed, now many companies are moving their business online due to the fact that they are very much preventing it from being carried out offline (permanent coronavirus quarantines, the war in Ukraine, etc.). It also affects the fact that there are not so many verified domains. If there is a quality product and a desire to develop, then I think it will be a good investment, but at a reasonable price