The 2000–2002 collapse in technology-share valuations was the dot-com crash.
The crash followed a speculative boom in internet-related companies during the late 1990s. Investors often assigned extremely high valuations to businesses with promising websites or online models, even when those companies had little revenue or no profits. The Nasdaq Composite, heavily weighted toward technology shares, reached a closing peak of 5,048.62 on March 10, 2000.
As expectations changed, many internet companies failed to meet projected growth. The Nasdaq then fell sharply, and the decline continued through 2002. Established technology firms also lost market value, while venture funding and initial public offerings contracted.
The dot-com crash is sometimes confused with the 2008 financial crisis. The dot-com episode centered on technology valuations and business-model speculation; the 2008 crisis centered on housing finance, mortgage securities, bank balance sheets, and credit markets.