RT Journal Article
SR Electronic
T1 What Went Wrong With the Dot-Coms?
JF The Journal of Investing
FD Institutional Investor Journals
SP 52
OP 56
DO 10.3905/joi.2002.319506
VO 11
IS 2
A1 Damir Tokic
YR 2002
UL https://pm-research.com/content/11/2/52.abstract
AB The investment opportunities approach to valuation of growth shares provides a theoretical explanation of the recent fall of Internet stock prices. Managers of Internet firms overinvested in R&D and marketing, which led to negative profitability. Investors questioned the business savvy of managers once they realized they had not been able to convert their growth opportunities into steady earnings. This caused a sell-off in the Internet sector, contributing to poor U.S. market performance.