The stock-market collapse that followed the bursting of technology shares in 2000 is called the dot-com crash.
The crash followed a late-1990s bubble in internet and technology companies. Investors often valued firms according to website traffic, growth expectations, or the promise of future online business rather than reliable profits. The Nasdaq Composite reached an intraday peak of 5,132.52 on March 10, 2000.
Many companies failed when financing dried up and investors demanded sustainable earnings. The Nasdaq fell about 78% from its peak to its October 2002 low. The crash did not eliminate the internet economy: companies with durable business models eventually became extremely valuable. The term ‘dot-com bubble’ refers to the speculative boom, while ‘dot-com crash’ describes the subsequent market decline.