The Bottom Line Is AI the New Dotcom Bubble?
Jan 15, 2026
In a captivating discussion, Ernst Malmsten, co-founder of boo.com, shares insights from the dot-com era, revealing the highs and lows of launching a leading online fashion retailer. Gretchen Morgenson, an esteemed financial journalist, highlights the rampant euphoria and valuation hazards of the time. David Pringle offers a comparative look at the US and European tech landscapes. Together, they explore whether today's AI enthusiasm mirrors that explosive bubble, emphasizing crucial lessons on timing, investment strategies, and the inevitability of market corrections.
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Rapid Rise From Swedish Startup To Big Ambition
- Ernst Malmsten described founding Boo.com after selling a successful Swedish online books business and moving to London to build a fashion e-commerce empire.
- He raised large sums from US and fashion investors and aimed to launch big across Europe and the US quickly.
Professionals Fueled The Dot‑Com Euphoria
- Investment banks and professionals participated enthusiastically in the dot-com euphoria despite conflicts of interest tied to IPO fees.
- That professional endorsement drew many unsophisticated investors into risky markets they might otherwise have avoided.
Feature-Rich Site Crashed Against Dial-Up Reality
- Boo.com built an advanced, image-heavy site with features like a virtual shopping assistant that ran poorly on widespread dial-up connections.
- The launch drove traffic but delivered a very low conversion rate and slow load times, producing negative reviews and weak sales.