WhyItDropped

Nasdaq · October 25, 2000

When Earnings Season Broke the Story

-5.56%

single-day change vs previous close

Part of a longer stretch

Nine months down without a rest

midway through · 2000-07-17 → 2001-04-04, -61.66% over the whole period

What happened that day?

  • 25 October 2000 — Nasdaq Composite fell 5.56%, mid third-quarter earnings season
  • During the bubble, revenue growth and user counts moved prices; profit was a later problem
  • Once growth itself slowed, there was no remaining argument
  • Hardest hit were internet companies dependent on advertising revenue
  • Because the advertisers were other internet companies running out of money. When one side collapsed, the other side's revenue vanished with it
  • Fell 57.18% from peak

Sources

Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.