14. During the early days of the Internet, most dot-coms were driven by revenues rather than profits.

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14. During the early days of the Internet, most dot-coms were driven by revenues rather than profits. Alarge number were even driven by “hits” to their site rather than revenues. This all changed in early 2000, however, when the prices of unprofitable dot-com stocks plummeted on Wall Street. Most analysts have attributed this to a return to rationality, with investors focusing once again on fundamentals like earnings growth. Does this mean that, during the 1990s, dot-coms that focused on “hits” rather than revenues or profits had bad business plans? Explain.

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