The early-2000s collapse of technology shares after the internet boom is called the dot-com crash.
During the late 1990s, investors bid up companies associated with the internet, often valuing businesses on website traffic or future growth rather than profits. The Nasdaq Composite reached a peak of 5,048.62 on March 10, 2000. Many firms had little revenue, weak business models, or no path to profitability.
After the bubble burst, technology shares fell sharply and numerous internet companies failed. The Nasdaq lost about 78% of its value from its March 2000 peak to its October 2002 low. The wider U.S. economy experienced a recession in 2001, though the crash did not produce a second Great Depression.
The term dot-com crash describes the market collapse, while dot-com bubble describes the preceding period of speculation. Some internet companies that survived later became major businesses.