Dotcom Stocks 2025: Are We Facing Another Tech Bubble?

The term ‘dotcom’ conjures memories of the late 1990s—an era when tech startups with little more than a clever domain name and grand ambitions soared to astronomical valuations. Fast forward to 2025, and ‘dotcom stocks’ are once again making headlines. With Australian and global tech shares hitting record highs, investors are asking: Are we headed for a repeat of the original dotcom crash, or is this a fundamentally new landscape?

The Dotcom Boom: A Quick Refresher

Back in the late 1990s, the internet was the wild frontier of business. Companies like Amazon, eBay, and Pets.com became household names almost overnight. Many of these early tech firms went public with little revenue and no profits, yet their share prices soared on a wave of investor optimism. When reality set in around March 2000, the bubble burst—wiping out trillions of dollars in market value and sending shockwaves through the global economy.

• Amazon survived and thrived, but many others vanished.

• Australian tech darlings like LookSmart and Davnet saw similar meteoric rises and dramatic falls.

• The crash led to tighter regulations and more cautious investor sentiment around tech IPOs for years.

Dotcom 2.0? What’s Driving Tech Valuations in 2025

In 2025, ‘dotcom’ is shorthand for a new generation of tech stocks—many of them global, but with a growing number listed on the ASX. The difference this time? Many of these companies have real revenue streams, established user bases, and are leveraging AI, cloud computing, and fintech innovations.

Key drivers of the 2025 dotcom resurgence include:

• AI and automation: Australian businesses are adopting AI-powered platforms at a record pace, fueling demand for related software and infrastructure companies.

• Remote work technologies: The hybrid work trend, solidified by recent Fair Work Commission rulings, is boosting software and cloud service providers.

• IPO and M&A boom: The ASX saw a 20% increase in tech IPOs in the first half of 2025, with venture capital flooding into SaaS, fintech, and e-commerce platforms.

However, some analysts warn that certain valuations—such as those for ‘pre-revenue’ AI startups—are reminiscent of the late-90s mania. The ASX Tech Index is up over 35% YTD, outpacing the broader market by a significant margin.

Lessons from the Past: How to Navigate the New Dotcom Wave

While there are clear differences between the original dotcom era and today’s tech landscape, some lessons remain timeless for Australian investors:

• Focus on fundamentals: Revenue, profitability, and a clear path to sustainable growth matter more than hype or a catchy ‘.com’ name.

• Diversify tech exposure: Don’t put all your eggs in high-flying startups. Balance with established tech leaders and other sectors.

• Beware of FOMO: Fear of missing out drove many to invest at the peak of the dotcom bubble. Set clear investment goals and stick to your strategy.

Regulatory changes in 2025—such as tighter ASX listing requirements for tech IPOs and increased scrutiny on AI ethics and data privacy—may also help curb excesses, providing some guardrails that didn’t exist in 2000.

Australian Dotcom Standouts to Watch

Among the latest crop of ‘dotcom’ darlings on the ASX and beyond are:

• NeuralNet.com.au: A Sydney-based AI platform powering logistics and supply chain solutions for major retailers.

• GreenCart.com: An e-commerce marketplace focused on sustainable and locally sourced products, riding the ESG investing wave.

• FinPilot.com.au: A fintech startup offering AI-driven personal finance tools, now expanding into Southeast Asia.

These companies show strong growth and real-world adoption, but investors should still dig into their financials and risk factors—especially with global tech sentiment running high.