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Dot-Com BubbleThe dot-com bubble refers to an internet company stock market bubble that began around 1995 and burst in 2000. Over those five years, the Nasdaq climbed from 1,000 to more than 5,000 points—reaching its peak in March 2000. In the early to mid-1990s, as the internet was becoming a larger part of everyday life, the buzziest startups of the era were "dot-com companies"—companies that relied on the internet (and its most common domain) to do business, like Amazon. Investors and venture capitalists couldn't get enough: At the height of the bubble, venture capital deals totaled more than $25B per quarter. Despite the influx of capital, many dot-com companies weren't generating enough revenue, often operating at net losses between $10M and $30M a quarter. Several major tech companies, including Dell, Cisco, and Microsoft, began selling off technology stocks. Investors were spooked and began withdrawing their money. Between March 2000 and October 2002, the Nasdaq dropped 76% to 1,139.90. Many dot-com-era companies shut down, but some are still around—like Amazon, PayPal, and Google. These companies are largely credited with surviving the dot-com bubble because of their focus on long-term, scalable growth.Explore Dot-Com Bubble

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The dot-com bubble burst in 2000 when the Nasdaq dropped more than 76% in 2 yearsBetween 1995 and 2000, the Nasdaq index jumped from 1,000 to 5,000 amid excitement over new Internet companies. As venture capitalists dumped money into startups, those same companies struggled to turn a profit, leading to a bubble. The Nasdaq wouldn't reach its former high until 2015. Investopedia The dot-com bubble burst in the early 2000s If you’ve heard of companies like Google and Yahoo, you’re already partially familiar with the dot-com bubble: a period from roughly 1995 to 2001, when internet companies were the hottest thing in venture capital. The “bubble” part of the term refers to the industry’s eventual implosion. The Street Congress temporarily raised the H-1B cap during the dot-com boomTo meet soaring demand for tech talent in the late 1990s, Congress lifted the H-1B cap from 65,000 to 195,000 visas between 2001 and 2003. The increase—tied to the dot-com bubble—lapsed once demand slowed, but an additional 20,000 slots for advanced degree holders were added. Migration Policy Institute The original 'four horsemen' of tech were Intel, Dell, Microsoft, and CiscoThese companies became known as the "four horsemen of tech" for the influence the companies had both on other businesses and investors in the late 1990s and early 2000s. The expansion of internet infrastructure throughout the 1990s and the dot-com bubble lifted these companies to incredible heights. CNBC More than 650 companies went public in the US in 1996As the dot-com bubble reached its peak, most dot-com companies went public with little proof of being profitable and were often overvalued. In 1999, the Nasdaq's price-to-earnings ratio (a tool used to determine a stock's value that divides its price by earnings) hit 90.2, signaling that many companies were operating at a net loss. Startups promised investors that more time and money would help scale their businesses and become profitable. International Banker The 'big bang' of the dot-com era: Netscape's stock price doubled on the day of its initial public offeringThe company behind the browser that revolutionized search went public on August 9, 1995. Just before the IPO, the company increased its initial opening price from $14 to $28. On the day the company went public, shares traded as high as $71 before closing at $58.25. The company's market capitalization exceeded $2B. The eye-popping IPO is largely considered the beginning of the dot-com bubble. Internet History Podcast The dot-com boom sent tech stocks soaring before a historic collapseA look at the dot-com bubble, when investors poured money into unproven internet startups, driving the Nasdaq to dizzying heights before it crashed by more than 80% after 2000, showing how new technologies can detach markets from reality. YouTube In 2025, American tech companies will spend $300B to $400B on AIThat is, in nominal dollars, more than any group of companies has ever spent to do anything. Notably, these companies are not remotely close to earning $400B on artificial intelligence. Spotify The dot-com stock bubble taught Howard Marks about marketsAnnual investment letters from Howard Marks, the billionaire cofounder of top distressed debt shop Oaktree Capital Management, are required reading on Wall Street. The prolific writer and investor explains the distinction between the folly of trying to time the market and the necessity of paying attention to market cycles. The difference makes all the difference in returns. Oaktree Capital Management

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