AZnomicsThe Dot-Com Crash
NASDAQ, 2000–2002
Internet is young but growing fast. Amazon just went public. Most sites have no revenue.
🔍 Why Did This Happen?
Companies with zero revenue traded at valuations worth billions. Investors feared missing the "next Microsoft." Momentum replaced analysis. When logic finally returned, prices collapsed 78%.
Low interest rates and massive VC inflows funded companies that burned millions monthly with no plan for profit. The incentive was to go public fast — not to build a real business.
🔄 What Happened Next
Policy changes, recovery milestones, and lasting lessons
CEOs and CFOs must personally certify financial statements. Penalties for fraud increased dramatically. Corporate governance overhauled.
Investment banks barred from pressuring research analysts to issue positive ratings on IPO clients. Conflicts of interest reduced.
Google IPOs at $85 with actual revenue and profit. A new template: launch publicly only when the business model is proven.
NASDAQ finally surpasses its March 2000 peak — 15 years later. Amazon, Google, and Apple lead the recovery, not speculative startups.