What happened during the Dot Com Crash of 2000 to 2002? A similar thing may be occurring right now worldwide in AI and Chips

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The dot-com crash of 2002 marks the painful conclusion of the internet stock market bubble, which officially burst in March 2000. By October 2002, the tech-heavy Nasdaq Composite Index had plummeted roughly 78% from its peak, wiping out trillions of dollars in market capitalizations and bankrupting hundreds of unproven startups. 

The Core Drivers

• Irrational Exuberance: In the late 1990s, venture capitalists and retail investors threw money at almost any company with a ".com" or ".net" in its name, completely ignoring fundamental business metrics. 
• Growth Over Profit: Startups operated on a "get big fast" strategy. They prioritized massive marketing campaigns—sometimes burning up to 90% of their budgets—over generating revenue or cash flow. 

The 2002 Climax

While the initial crash happened in 2000, 2002 was the year the market officially "bottomed out" at roughly 1,139.90 points. This final leg downward was heavily exacerbated by: 

• Corporate accounting scandals (most notably Enron, WorldCom, and Adelphia Communications).
• The broader economic fallout and uncertainty following the September 11, 2001 attacks.
• The drying up of initial public offering (IPO) and venture capital markets. 

The Survivors and Legacy

While the vast majority of dot-coms failed (like the infamous Pets.com, which went from a $300 million valuation to zero), a few companies with actual product-market fit and solid cash reserves survived the dark period. Giants like Amazon and eBay endured the crash and eventually emerged as massively profitable pillars of the modern tech economy. 

Furthermore, as discussed in Goldman Sachs, the infrastructure and fiber-optic networks built during the boom provided the foundational groundwork for the web we rely on today. 

If you want, I can:

• Detail how the dot-com crash compares to modern tech market corrections
• Explain which specific startups survived to build the modern internet
• Outline the changes in venture capital investing that resulted from this era

Let me know how you'd like to narrow down the information.

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Dot-com bubble

Wikipedia

https://en.wikipedia.org › wiki › Dot-com_bubble

During the dot-com crash, many online shopping companies like Pets.com, Webvan, and Boo.com, as well as several communication companies, such as WorldCom, ...

Understanding the Dotcom Bubble: Causes, Impact, and ...

Investopedia

https://www.investopedia.com › Economy › Economics

The dotcom bubble was a period of rapid growth and eventual collapse in the stock prices of internet-based companies during the late 1990s and early 2000s.