The Dot-com crash followed the surge and collapse of internet-related share prices from 2000 to 2002.
During the late 1990s, investors placed exceptionally high valuations on companies associated with the emerging internet. Many businesses had little revenue or no profits, yet their shares rose rapidly as investors expected online commerce and technology to transform the economy.
The Nasdaq Composite reached an intraday peak of 5,132.52 on March 10, 2000. It then fell sharply as investors questioned unrealistic valuations and companies struggled to meet expectations. By October 2002, the index had lost roughly 78% from its peak.
The crash did not end the internet economy. Instead, it eliminated many weak or speculative companies while stronger firms survived and later expanded. The episode is often compared with other bubbles because enthusiasm about a genuine innovation was combined with prices that greatly exceeded many companies’ underlying results.