The 2000–2002 collapse of technology-company share prices is known as the dot-com crash.
It followed the dot-com bubble, when investors poured money into internet businesses and other technology companies. Many firms had high valuations despite limited revenue, large losses, or unproven business models. The Nasdaq Composite reached 5,048.62 on March 10, 2000, before falling dramatically.
The downturn was especially severe for technology and internet shares, although the broader economy also experienced a recession in the United States. The September 11 attacks in 2001 added further economic uncertainty, but they did not start the bubble or explain the whole collapse.
The term “dot-com” refers to the .com domain ending associated with many internet startups. Not every technology company failed: firms such as Amazon survived and later grew substantially. The crash instead showed that a promising industry can still become dangerously overvalued.