The collapse of technology shares after the late-1990s internet-stock boom was called the dot-com crash.
During the dot-com bubble, investors placed exceptionally high valuations on companies associated with the internet, even when many had little revenue or no profits. The Nasdaq Composite, a technology-heavy U.S. index, rose dramatically and reached a peak on 10 March 2000.
After expectations changed, internet and technology shares fell sharply. Many dot-com companies failed, while surviving firms faced much lower valuations and tighter access to capital. The Nasdaq ultimately lost a large share of its value from its 2000 peak before reaching a later low in 2002.
The crash was not simply a collapse of every technology business. Companies with durable products, customers, and cash resources could survive or later grow. The term refers specifically to the bursting of the internet-stock bubble and the market decline that followed.