The speculative boom whose collapse drove the Nasdaq crash beginning in 2000 was the dot-com bubble.
The bubble centered on internet-related companies, many of which attracted enormous valuations despite limited revenue, persistent losses, or untested business models. Investors often treated a web address or rapid user growth as evidence of future profitability.
The Nasdaq Composite reached an intraday peak of 5,132.52 on March 10, 2000. It then fell sharply as investors reassessed technology valuations and financing became harder to obtain. The decline continued for years, and many highly valued internet companies failed or were acquired at much lower prices.
The dot-com bubble is not the same as the later U.S. housing bubble, which contributed to the 2007–2008 financial crisis. The term “dot-com” refers to the internet domain suffix associated with many of the companies involved.