The collapse of technology-stock valuations that began in March 2000 is known as the dot-com crash.
During the late 1990s, investors poured money into internet companies, often valuing businesses on projected growth rather than profits. Many firms had limited revenue, weak business models, or no sustainable path to earnings, yet their shares rose dramatically.
The Nasdaq Composite peaked at 5,048.62 on March 10, 2000. It then declined for more than two years, losing about 78% of its value by October 2002. Numerous internet startups failed, while some durable companies survived and later became major businesses.
The dot-com crash is not the same as the 2008 financial crisis. The former centered on technology and internet-stock valuations; the latter grew from housing finance, mortgage securities, and banking-system stress.