Sep 2020
Importantly, when a company’s stock price becomes incredibly high and ultimately collapses, the company itself might continue to exist and even grow its operational results. For example, Cisco Systems was a leading dotcom bubble stock in the late 1990s, and it still exists today. However, Cisco’s stock price is about 45% lower today than it was in early 2000, over 20 years ago. Ouch! When you start with an exorbitant stock price, there are not a lot of good things that can happen. … We don’t want to see investors who are caught up in a bubble lose their money; however, somebody’s going to be left holding the bag when this tech stock bubble ends. They’re likely to lose money—perhaps a lot of it.