The Wake Of The Crash

from the everything's-gone dept

The San Jose Mercury News takes a look at companies in the “wake” of the dot com crash. Over 70% of companies that went public in the boom years are either out of business or valued at less than half their original value (about 40% are dead, bankrupt, or were sold off in fire sales). That’s pretty impressive for a crew of IPOs that went public in the past five years. The article suggests that investment bankers are going to take a lot of the blame and it may take a “generation” to recover – as many people won’t trust the current crop of analysts after seeing what they did. Of course, many of those analysts have already been pushed out or moved on (often with fat severance checks), and should things turn up again, I don’t think people will care that much. People have astoundingly short memories when money appears to be available.

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...