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The State of E-Commerce

By Philipp in News
Sun Feb 27, 2000 at 11:12:51 AM EST
Tags: News (all tags)

The Economist has a survey about the current state of e-commerce. The leading article notes some interesting facts and predictions. 80% of today's Internet companies may not survive-just as almost all the early railroads, car makers and airlines did not. [...] several big American e-commerce firms have crashed: eToys (down 80% from its peak), Priceline (down 69%) and E*Trade (down 66%), for example. [...] whenever firms can raise capital virtually free, they are likely to waste much of it, as so many dot.coms are now doing with their marketing expenditure.

I wonder how long the current climate will hold up, when everybody and his dog is starting a company. I wonder even more what will come after the inevitable crash...


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The State of E-Commerce | 5 comments (5 topical, editorial, 0 hidden)
Several big American e-commerce ... (none / 0) (#2)
by driph on Sun Feb 27, 2000 at 08:20:18 AM EST

Driph voted 1 on this story.

Several big American e-commerce firms have crashed: eToys (down 80% from its peak), Priceline (down 69%) and E*Trade (down 66%), for example." That's a bit misleading! In the article, the crash refers to company stocks.. Good article, although my take is this: How many of those original plane and automobile companies would have lasted a bit longer had they the ability to advertise, market, display, and answer questions about their product to millions of people? I don't think the analogy works that well.. Will we see companies go out of business? Sure..companies in all catagories go out of business.. but I really dont see it being a CRASH. The bottom may develop a horrible leak in the stock market, once the hysteria subsides, but the roof isnt going to collapse on us all any time soon.

Vegas isn't a liberal stronghold. It's the place where the rich and powerful gamble away their company's pension fund and strangle call girls in their hotel rooms. - Psycho Dave

This is an interesting topic. I've... (none / 0) (#3)
by neonman on Sun Feb 27, 2000 at 09:56:48 AM EST

neonman voted 1 on this story.

This is an interesting topic. I've always wondered how long certain e-commerce firms can sustain the overvaluation and hype that they have in the market.
Aaron Grogan

Just business as usual. Most people... (none / 0) (#1)
by Demona on Sun Feb 27, 2000 at 10:35:30 AM EST

Demona voted 0 on this story.

Just business as usual. Most people don't use their brains, and they like to hop on a bandwagon that looks popular and profitable. Nothing really new under the sun, except for those who don't learn from history.

This is interesting, because of the... (none / 0) (#4)
by gaijin|dog on Sun Feb 27, 2000 at 11:12:51 AM EST

gaijin|dog voted 1 on this story.

This is interesting, because of the way the economy is today with its heavy reliance on the dot com boom. If the dot com's start on a downward slide, brick and mortar businesses may start as well.

If pain tells us we are alive, what does apathy say?

Re: The State of E-Commerce (2.00 / 1) (#5)
by FlinkDelDinky on Sun Feb 27, 2000 at 03:31:19 PM EST

I think mania's have always been a characteristic of speculative markets. From tulips to railroads there have always been spectacular crashes.

As for e-commerce companies? I think they are way overvalued. Certainly crash material.

Look at Amazon. Yes they're a great company. But combine a big brick & mortor book store's stock price with a big brick & mortor music store's stock price then compare against Amazon's stock price. Then compare sales.

You know, I live next to two B&N book stores. I buy books from them all the time. And yes, I do buy books from the net. But you know what, B&N stores kick ass, I just like them more. And I suspect that most of you agree (at least those of you with a B&N nearby).

Also, Alan Greenspan is putting the brakes on the economy. He's stated a 6% a year stock market growth objective. When things are forced to slow down (via high interest rates) were is that money going to go? Rabid speculation?

The State of E-Commerce | 5 comments (5 topical, 0 editorial, 0 hidden)
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