The dot-com bubble peaked in 2000 before the Nasdaq Composite began its historic collapse.
The Nasdaq Composite reached its peak on 10 March 2000, closing at 5,048.62. Investors had bid up internet and technology companies, including many firms with limited revenue or no profits. The availability of venture capital, enthusiasm about the commercial internet, and expectations of rapid growth helped drive extraordinary valuations.
After the peak, technology shares fell sharply as investors reassessed earnings, business models, and financing needs. The Nasdaq ultimately lost about 78 percent of its value from the March 2000 peak to its October 2002 low. The crash did not mean the internet lacked economic importance; companies with durable products and revenues eventually became major businesses. The term “dot-com bubble” refers to the speculative rise and subsequent collapse, not to every technology company founded during that period.