The 2000s bubble that burst after speculation in internet companies drove technology stocks to extreme valuations was the Dot-com bubble.
The bubble developed during the late 1990s as investors poured money into internet-related companies. Many businesses had little revenue or no profits, yet their share prices were justified by expectations of rapid online growth. The Nasdaq Composite, heavily weighted toward technology companies, reached 5,048.62 on 10 March 2000.
After confidence weakened, technology shares fell sharply. The Nasdaq lost about 78% of its value from its March 2000 peak to its October 2002 low. Numerous startups failed, venture funding contracted, and established technology companies also experienced major losses.
The crash did not mean the internet lacked economic value. Companies such as Amazon survived and later became much larger, while the collapse eliminated many firms whose business models were unsustainable. The Dot-com bubble is therefore a valuation bubble, not the name of one trading day.