The dot-com bubble was the U.S. stock-market bubble that burst in 2000 after technology shares drove the Nasdaq Composite to a record high.
The Nasdaq Composite peaked at 5,048.62 on March 10, 2000. Investors had poured money into internet and technology companies, including many businesses with little revenue or no profits. Expectations about future digital growth pushed valuations far beyond conventional measures.
After the peak, technology shares fell sharply. The Nasdaq lost roughly 78% of its value by October 2002, although the broader economic effects were less severe than those of the 1929 crash or the 2008 financial crisis.
The bubble’s name refers to internet-related companies, not to the internet itself. Some firms that survived the collapse later became major businesses, while many speculative startups disappeared.