The 1990s technology-stock collapse following the Internet boom was commonly called the dot-com crash.
The dot-com bubble formed as investors poured money into Internet companies, including many businesses with limited revenue or no profits. Enthusiasm about online commerce and rapid technological change encouraged high valuations, venture funding, and initial public offerings.
The technology-heavy Nasdaq Composite reached its closing peak of 5,048.62 on March 10, 2000. After that peak, technology shares fell sharply. The decline damaged many young companies, and numerous dot-com firms shut down or were acquired. The Nasdaq ultimately fell about 78% from its 2000 peak to its October 2002 low.
The crash did not mean that the Internet lacked economic value. Companies such as Amazon survived the collapse and later became major businesses. The key distinction is between the lasting importance of Internet technology and the unsustainable prices assigned to many early Internet companies.