The Dot-com bubble was the technology-focused stock-market bubble that burst in 2000.
During the late 1990s, investors poured money into internet-related companies, often valuing them on expected future growth rather than current profits. New firms could attract enormous attention after initial public offerings, while the Nasdaq Composite became the most visible market gauge for technology stocks.
The bubble began to deflate in March 2000. The Nasdaq reached a peak of 5,048.62 on 10 March 2000, then fell for more than two years as investors reassessed earnings, business models, and financing conditions. Many internet companies failed, while established technology firms also suffered steep share-price declines.
The collapse did not prove that the internet lacked economic value. Companies such as Amazon and eBay survived and later became major businesses, while many speculative ventures disappeared. The dot-com episode is therefore a reminder that a useful technology can coexist with unrealistic market valuations. It is distinct from the 2008 housing and credit crisis.