The Technology Bull Market

The last two decades have seen a global technology revolution that began with the personal computer (PC) and led to the Internet era. Companies like Apple, Microsoft, Intel, and Dell Computer were at the forefront of this new wave of technology that promised to enhance productivity and efficiency through the computerization and automation of many processes.

The capital markets recognized the value that was being created by these companies. Microsoft, which was founded in 1975, had a market capitalization of over $600 billion by the beginning of 2000, making it the world's most valuable company, and its founder, Bill Gates, one of the richest men in the world. High values were also given by the market to many of the other blue-chip technology firms such as Intel and Dell (Table 3-1). It was in this environment of highly valued technology companies that the Internet mania reached its peak.