Dot-com Bubble
A market bubble around 2000 that burst after internet company valuations diverged severely from earnings fundamentals, with the Nasdaq index falling about 78% from its peak. It is a classic historical case of overinvestment in a technology boom.
Core Facts
Timeline (last 90 days)
During the internet bubble, although actual traffic growth continued, excessive competition among equipment vendors and overcapacity caused their profits to collapse and their stock prices to plummet.
In the late 1990s, telecom equipment vendors (such as Lucent and Nortel) greatly expanded capacity due to expectations of an internet traffic explosion, and their stock prices soared.
During the dot-com bubble, being bullish on the long-term value of the internet and shorting absurdly valued telecom equipment makers could hold at the same time; such long-short parallel combinations are not new in investing.
Typical features of the internet bubble include: valuations supported by non-revenue metrics such as "user growth" and "clicks," frantic inflows of venture capital, IPO thresholds rendered meaningless, and the narrative logic of "this time it's different."
The profitability of current leading AI companies is far stronger than that of internet companies during the dot-com bubble, with healthier cash flows and balance sheets.
The current share of passive investing is far higher than during the dot-com bubble, and once the AI narrative wavers, redemption pressure will quickly transmit to the entire market through index funds, possibly faster than during the dot-com bubble.
The Nasdaq index plunged about 78% within two years after peaking in March 2000, and countless companies went bankrupt and were delisted.
2000年前后互联网泡沫中，纳斯达克指数从峰值下跌约78%。
At the peak of the 2000 internet bubble, many tech companies had price-to-sales ratios exceeding 50 times or even 100 times, while the reasonable range for traditional software companies was usually between 5 and 15 times.
Before the dot-com bubble burst in the early 2000s, many companies used non-financial metrics such as page views and registered user counts in place of real revenue to support high valuations.
7 more timeline events
All Facts (18)
The burst of the dot-com bubble in 2000 caused the NASDAQ index to fall nearly 80%
80%Partially VerifiedHistorically, the Internet bubble of the 1990s and the blockchain craze of the 2010s both gave rise to similar self-deprecating cultures.
65%UnverifiedDuring the internet bubble, although actual traffic growth continued, excessive competition among equipment vendors and overcapacity caused their profits to collapse and their stock prices to plummet.
50%UnverifiedDuring the dot-com bubble, being bullish on the long-term value of the internet and shorting absurdly valued telecom equipment makers could hold at the same time; such long-short parallel combinations are not new in investing.
50%UnverifiedIn the late 1990s, telecom equipment vendors (such as Lucent and Nortel) greatly expanded capacity due to expectations of an internet traffic explosion, and their stock prices soared.
50%UnverifiedTypical features of the internet bubble include: valuations supported by non-revenue metrics such as "user growth" and "clicks," frantic inflows of venture capital, IPO thresholds rendered meaningless, and the narrative logic of "this time it's different."
50%UnverifiedThe current share of passive investing is far higher than during the dot-com bubble, and once the AI narrative wavers, redemption pressure will quickly transmit to the entire market through index funds, possibly faster than during the dot-com bubble.
50%UnverifiedThe profitability of current leading AI companies is far stronger than that of internet companies during the dot-com bubble, with healthier cash flows and balance sheets.
50%UnverifiedThe Nasdaq index plunged about 78% within two years after peaking in March 2000, and countless companies went bankrupt and were delisted.
50%Unverified2000年前后互联网泡沫中，纳斯达克指数从峰值下跌约78%。
50%UnverifiedAt the peak of the 2000 internet bubble, many tech companies had price-to-sales ratios exceeding 50 times or even 100 times, while the reasonable range for traditional software companies was usually between 5 and 15 times.
50%UnverifiedBefore the dot-com bubble burst in the early 2000s, many companies used non-financial metrics such as page views and registered user counts in place of real revenue to support high valuations.
50%UnverifiedBefore the dot-com bubble burst in 2000, the high-yield bond market had already tightened financing conditions for technology companies ahead of the broader market.
50%UnverifiedThis wave of AI infrastructure buildout is structurally similar to the fiber-optic deployment boom during the early-2000s dot-com bubble: capital-intensive, with long payback periods and uncertain end demand.
50%UnverifiedInternet infrastructure continued to support two decades of digital economic growth after the bubble burst in 2000.
50%UnverifiedBetween 1995 and 2000, the NASDAQ index soared from approximately 1,000 points to over 5,000 points, and after the bubble burst, it plummeted nearly 80% within two years.
50%Unverified历史上从互联网泡沫到区块链热潮，市场情绪往往远远领先于技术的真实成熟度
50%Unverified互联网泡沫破灭后，真正有价值的公司才浴火重生
50%