The Dot-com crash describes the 2000–2002 collapse in technology and internet shares after the Dot-com bubble burst.
The bubble had formed as investors bid up companies associated with the emerging World Wide Web. Many firms had little revenue, no profits, or business models dependent on continual investment. The Nasdaq Composite, heavily weighted toward technology companies, reached 5,048.62 on 10 March 2000 before falling steeply.
By October 2002, the Nasdaq had lost about 78% from its peak. Numerous internet companies failed, while some surviving firms later became major businesses. Amazon and eBay, for example, endured despite the collapse, although their share prices also suffered during the downturn.
The Dot-com crash is not the same as the 1987 Black Monday crash or the 2008 mortgage-related crisis. It centered on excessive valuation of technology and internet companies, though the broader economy also experienced a recession in the United States.