It was one of the pioneers of e-commerce in the 1990s and saw its stock and value soar in May 2000. But when the dot-com bubble burst, it was one of the biggest victims.
Her reason Wide sight, whose largest customers included US states and major cities and companies such as Club Med, Gwinnett County, Pillsbury Winthrop, Rand McNally, RS Components.
Takeoff before forced landing
BroadVision was founded in 1993 and introduced its innovative e-commerce services in 1995.
The company was successfully listed on Nasdaq the following year and was enthusiastically received.
In 2000 it acquired Interleaf and that same year launched QuickSilver. By the summer of that year, the software company was showing market capitalization of $23 billion. Two years later she would be fighting for her survival.
The diary said July 29, 2002, when he saw his shares fall to an all-time high and his market value have shrunk to US$98 million.
Losing 99.5% of its value
This meant that the company was worth less than 0.5% of its value two years ago. And this was despite the fact that Broad Vision had $111 million in cash readily available in bank accounts.
Investors therefore believed that the entire company and its services were worth less than the money it held—a phenomenon described in stock market parlance as “trading below the money.” How is this possible? Assets, prospects, management, and so-called “air” are all classified as having a… negative sum. It’s a situation where you deserve to be “dead” rather than alive. Your shares were delisted from the Nasdaq for a time.
Current fears of dot-com bubble turbulence
The Broad Vision had an abrupt “death” and after all… he was resurrected. It was one of the companies that managed to recover from the great dot.com bubble crisis. Its story remains instructive – especially today, as fears come back to the surface for one new stock market bubble, again focusing on technology.
The impressive performance of stock markets around the world is largely due to the frenzy surrounding artificial intelligence. Perhaps the most characteristic example is, of course, the Nvidia, up 4,300% in five years.
O S&P 500, the most representative index of the US stock market saw its value strengthen by more than 50% compared to the October 2022 lows until today. The Nasdaq, in which technology stocks have greater weight, records gains of 70% since the end of 2022.
O technology industry saw its share of the total market capitalization of the S&P 500 rise to 32%according to LSEG Datastream. It is an element that also evokes memories of 2000, when the sector’s share rose to 35%. All of this sounds alarm bells.
What could suddenly turn off the lights at the global stock party