The speculative bubble commonly linked to the dot-com stock-market crash was the dot-com bubble.
The bubble developed during the late 1990s as investors poured money into internet-related companies. Many firms had innovative ideas but little revenue, profit, or workable business model. Venture capital, enthusiastic media coverage, and the belief that traditional valuation measures no longer mattered pushed technology share prices to extraordinary levels.
The Nasdaq Composite reached a peak of 5,048.62 on March 10, 2000. It then fell sharply as investors reconsidered company valuations, rising interest rates reduced the appeal of speculative assets, and many businesses failed to meet expectations. The index lost about 78% of its value from its peak to its October 2002 low.
The crash did not mean the internet lacked economic value. Companies such as Amazon and Google eventually became highly successful, but many early internet firms disappeared. The dot-com bubble is therefore the speculative boom; the dot-com crash describes the subsequent market decline.