The speculative boom and crash centered on internet companies that ended with the Nasdaq peak in March 2000 was the dot-com bubble.
Investors poured money into businesses associated with the internet, often valuing rapid user growth more highly than profits or workable business models. The Nasdaq Composite reached 5,048.62 on 10 March 2000, then began a long decline as confidence weakened and many companies failed.
The bubble’s collapse was not a rejection of the internet itself. Companies such as Amazon survived and later became major businesses, while many highly speculative firms disappeared. The period helped distinguish durable digital infrastructure from ventures dependent mainly on investor enthusiasm.
The dot-com bubble is sometimes confused with the 2008 housing and credit crisis. They were separate episodes, although both involved optimistic valuations and subsequent losses. The 2000 crash was especially concentrated in technology and internet-related shares.