The speculative collapse of technology stocks that began in 2000 is called the dot-com crash.
The crash followed a huge rise in internet-related share prices during the late 1990s. Investors often valued companies according to expected future growth rather than profits, and many newly listed businesses had limited revenue or no sustainable business model. The Nasdaq Composite, heavily weighted toward technology companies, became the clearest measure of the boom and collapse.
The Nasdaq reached a closing peak of 5,048.62 on March 10, 2000. It then fell for roughly two years, losing about 78% from that peak by October 2002. Many internet companies failed, while surviving firms faced layoffs, reduced investment, and much lower valuations.
The crash did not mean that the internet itself lacked economic value. Companies such as Amazon and later Google eventually demonstrated durable digital business models. A common mistake is treating every technology company as part of the same failed group; the episode primarily concerned excessive valuations and speculative financing.