Riding the Rollercoaster of Wild Expectations: Seven Mood Swings That Inflated the Dot-Com Bubble Beyond Belief

The Hype Cycle

As the dot-com bubble continued to inflate, the hype around internet companies reached fever pitch. This section will delve into the role of the media in hyping up these companies and the impact this had on investor behavior.

Media outlets, eager to capitalize on the public's interest in the internet, often published uncritical and overly optimistic reports about internet companies. This contributed to a cycle of hype that further inflated the bubble. Investors, buoyed by these positive reports, continued to pour money into dot-com stocks, pushing their prices up even further.