Richard A. D'Aveni, Professor of Strategic Management

« Back to list of articles

The China Bubble

At the height of the dot-com buttle in 1999, the magic word for hyping a stock was "internet.", one of many speculative dot-com companies, earned a gilded stock price of $11 per share in early 2000. Buoyed by an initial investment by, it ultimately raked in $300 million in early financing. Like many Internet companies in that era, however, it never earned a profit; when the buttle popped in late 2000, just months after went public, the company announced its liquidation, driving shares down to 19 cents, a 98 percent loss. Today, the magic word for hyping stock could be "China".

Read the full article