Outsourcing E-Business: Keep an Eye on the Fundamentals
Much has been made in the media of the failures of many dot-coms. Throughout much of 1998-1999, investors plunked down billions on the bet that these organizations could defy the odds and succeed, despite weak financial fundamentals -- revenue, earnings ratios, profit margins, etc. Numerous analysts warned of these weaknesses, but investors continued to drive up stock prices, often on the premise of the "greater fool" theory. As these companies floundered in 2000, investors returned to the fundamentals as success indicators.
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