The collapse of technology-stock prices that began in 2000 after excessive Internet-company speculation is called the dot-com crash.
During the late 1990s, investors poured money into Internet businesses, often valuing companies more for website traffic or growth promises than for profits. The Nasdaq Composite, a technology-heavy U.S. index, rose dramatically before reaching a peak on March 10, 2000.
After the peak, investors reassessed companies with weak earnings, and many Internet firms failed or lost most of their value. The Nasdaq fell roughly 78% from its March 2000 peak to its October 2002 low. The downturn also affected established technology companies, although several major firms ultimately recovered.
The dot-com crash is not the same event as the 2008 financial crisis. The earlier episode centered on an equity-market valuation bubble, while the later crisis was closely tied to housing finance, banking losses, and credit markets.