The speculative surge and collapse of technology stocks around the turn of the 21st century was the dot-com bubble.
The bubble developed during the late 1990s as investors poured money into internet-related businesses. Many companies received very high valuations despite having little revenue, weak profits, or no established business model. The availability of venture capital and enthusiasm about the commercial internet encouraged rapid company formation and public listings.
The Nasdaq Composite reached a closing peak of 5,048.62 on March 10, 2000. It then fell sharply as investors reassessed technology valuations and the prospects of internet companies. Numerous firms failed, while a smaller group of durable technology companies survived and later expanded.
The dot-com bubble is distinct from the later U.S. housing and mortgage crisis. It also is not synonymous with every technology-stock decline; the term refers specifically to the broad speculative boom and its subsequent collapse.