The 1990s boom and 2000–2002 collapse in internet-related stock prices is called the dot-com bubble.
Investors poured money into internet companies during the late 1990s, often valuing businesses on expected future growth rather than profits. Many firms adopted web-focused names and raised capital through initial public offerings despite limited revenue or no earnings.
The technology-heavy Nasdaq Composite reached its peak on March 10, 2000. It then fell sharply as investors reassessed valuations, interest rates rose, and many companies failed to build sustainable business models. The Nasdaq ultimately lost about 78 percent from its peak to its October 2002 low.
The crash did not prove that the internet lacked economic value. Companies such as Amazon and eBay survived and later grew substantially, while many weaker ventures disappeared. The key distinction is between the lasting technology and the unsustainable prices attached to many early internet stocks.