the dot-com bubble

The dot-com bubble occurred in the late 1990s and early 2000s when investors heavily funded many internet-based companies, often without solid business plans or profits. As enthusiasm for internet growth soared, stock prices of these companies skyrocketed, driven by speculation rather than fundamentals. Eventually, investors realized many of these companies were overvalued, leading to a sharp sell-off. This caused the bubble to burst, drastically reducing the value of many tech stocks, and resulting in significant financial losses. The event highlighted how speculative enthusiasm can inflate asset prices beyond their real worth, especially during a rapid technological and economic expansion.