The collapse of technology-stock valuations after the late-1990s internet boom is known as the dot-com crash.
The technology-heavy Nasdaq Composite reached a peak of 5,048.62 on 10 March 2000. Many internet companies had attracted enormous valuations despite little revenue or no profits. When investors began demanding stronger business results, technology shares fell rapidly.
The crash continued through 2002. The Nasdaq lost roughly 78% from its peak to its October 2002 low, wiping out trillions of dollars in market value. Some companies failed, while others survived by changing their business models or cutting costs.
The crash did not mean that the internet itself had failed. Companies such as Amazon and eBay survived the downturn and later became major businesses. The common mistake is to treat every technology company as equally speculative.