The 2000–2002 collapse in technology shares after the late-1990s internet investment boom is called the dot-com crash.
Internet companies attracted enormous investment during the late 1990s, and many businesses were valued on expectations of future growth rather than profits. The Nasdaq Composite reached its peak on March 10, 2000, at 5,048.62. As investors reassessed those expectations, technology shares fell sharply.
The Nasdaq eventually lost about 78% from its peak to its October 2002 low. Some companies failed, while others with viable technology and business models survived. The crash did not mean the internet itself was a failure; online commerce and digital services later expanded substantially. It showed instead that useful technology can still be accompanied by unsustainable valuations and speculative financing.