The dot-com bubble burst in 2000 after investors had driven internet-company valuations to extreme levels.
The boom centered on internet and technology companies, many of which attracted huge investments despite limited revenue, continuing losses, or untested business models. The Nasdaq Composite reached its peak on March 10, 2000, and then fell sharply as investors reassessed valuations and the prospects of newly listed firms.
The collapse was not caused by every internet company failing: firms such as Amazon and eBay survived and later became major businesses. The crash instead exposed how speculative pricing had separated many companies’ market values from their financial performance. The downturn also affected venture capital, technology employment, and wider business investment.