The 2000–2002 stock-market collapse driven largely by falling internet-company valuations is called the dot-com crash.
During the late 1990s, investors bid up shares of internet and technology businesses, often expecting future growth rather than relying on profits. Many companies had limited revenue, weak business models, or no earnings, yet they attracted substantial venture capital and public-market investment. The Nasdaq Composite became a central measure of the boom.
The bubble began breaking in March 2000. Rising interest rates, disappointing earnings, failed business plans, and tighter investor scrutiny helped reverse the speculative surge. The Nasdaq fell dramatically from its March 2000 peak to its October 2002 low, while many internet companies closed or were acquired.
Not every technology company failed. Amazon and other surviving firms later became major businesses, but their later success does not mean the original valuations were justified. The term “dot-com crash” describes the market collapse, while “dot-com bubble” refers to the preceding period of speculation.