The 2000–2002 collapse in technology shares listed on the Nasdaq is known as the dot-com bust.
During the late 1990s, investors poured money into internet companies, often valuing firms on expected future growth rather than profits. The Nasdaq Composite reached 5,048.62 on 10 March 2000, its peak during the dot-com bubble.
After the peak, investors became less willing to fund companies with weak earnings or uncertain business models. The Nasdaq fell sharply and ultimately lost about 78% of its value from its high to its October 2002 low. Many internet startups closed, while stronger companies survived and later became major businesses.
The bust is often confused with the broader technology transformation that continued afterward. The internet itself did not disappear; rather, speculative valuations collapsed. Companies such as Amazon and eBay survived the downturn, while many firms that had raised money through initial public offerings did not.