The U.S. technology-stock collapse that followed the late-1990s internet investment boom is commonly called the dot-com crash.
Internet businesses attracted enormous investment during the late 1990s, and many companies reached high valuations despite limited revenue or profits. The Nasdaq Composite, heavily weighted toward technology shares, peaked on March 10, 2000, at 5,048.62.
After the peak, investors reassessed companies’ business models and future earnings. The Nasdaq fell about 78% from its peak to its October 2002 low. Numerous internet startups failed, while some established technology companies survived and later became major parts of the digital economy.
The dot-com crash is related to the dot-com bubble but is not exactly the same term. The bubble describes the period of inflated expectations and valuations; the crash describes the subsequent collapse in technology-stock prices.