The Dotcom Bubble and Bust
On March 10th, 2000 the NASDAQ reached its summit at 5,048 points. At the top of the bubble several companies started to show signs of weakness.
One of the more public reasons for the beginning of the decline had to do with dotcoms spending without generating revenue. On March 20, 2000 Barrons featured a cover article titled "Warning: Internet companies are running out of cash -- fast," which predicted the imminent bankruptcy of many Dotcom companies.
Only two years after it was launched, Pets.com shut down in November of 2000 after having just raised $82.5 million earlier in the year in a February 2000 IPO. Citing debt of $247 million, eToys filed for bankruptcy February 2001. Dr. Koop began losing tens of millions of dollars per quarter in 2000 and shut down its operations in December 2001. Webvan shut down on June 2001 after losing $800 million.