Dotcom value drops 88% in 2000
Average bubble economy share cost $7.33 at year end
US dotcoms saw almost 90 per cent wiped off their value last year as investor jitters hit the bubble economy.
The average Internet company's closing share price was $7.33 at the end of 2000. This was down 51 per cent from the outfit's original float price, and 76 per cent lower than the closing price on the first day of trading, according to a study by Michigan-based market research firm BizVida.
It probed 341 public online businesses for the report, and found they lost an average of 88 per cent of their value in 2000.
In total, shareholders gained $29 billion in market cap on the day of their stock's IPO, but then lost $89 billion in value between the stock's maximum and minimum quarterly close after float.
The average dotcom saw its share price jump 106 per cent during its first day of trading, from an opening price of $15.04 per share to a closing price of $30.99.
This week ISP AltaVista decided to shelve its IPO plans, blaming the dismal state of the market. ®