The early-2000s collapse of technology stocks after the Internet investment boom is called the dot-com crash.
During the late 1990s, investors poured money into companies associated with the World Wide Web. Many firms had little revenue or profit, yet their share prices rose sharply because investors expected rapid future growth. The Nasdaq Composite, heavily weighted toward technology companies, became a central measure of this enthusiasm.
The bubble began to deflate in March 2000, when confidence in high technology valuations weakened. The September 11 attacks, recessionary conditions, and failures of unprofitable Internet businesses added to the decline. From its March 2000 peak to its October 2002 low, the Nasdaq lost roughly 78%.
The crash did not mean that the Internet itself was a failure. Companies with durable business models survived or later became major firms. The common mistake is treating every technology company as equally responsible for the bubble or its collapse.