The Dot Com Crisis, also known as the Dot Com Bubble, was a period of excessive speculation in internet-based companies during the late 1990s. As the internet became more accessible, a wave of tech startups, often called "dot-coms" (because of the ".com" in their web addresses), emerged. Investors, eager to capitalize on the booming internet sector, poured money into these companies, often without regard to their actual profitability or long-term viability.

Many of these companies had little to no earnings but were valued at astronomical prices simply because they were associated with the internet. The hype around the internet revolution led to a surge in stock prices, particularly for tech companies listed on the NASDAQ exchange in the United States.

However, by 2000, it became clear that many of these companies were not profitable and had no realistic path to becoming so. The bubble burst, leading to a sharp decline in stock prices. The NASDAQ index, which had reached a peak of 5,048 in March 2000, plummeted by nearly 80% over the next two years.

The crash wiped out billions of dollars in market value, led to the bankruptcy of many tech companies, and caused significant economic disruption. It also served as a stark reminder of the dangers of speculative investing and the importance of evaluating a company’s fundamentals before investing.