How did Nasdaq peak reach to 5048.62 during the dot com era? What happened?

rgh_argh: How did Nasdaq peak reach to 5048.62 during the dot com era? What happened?
Was it because of the hype or expectations investors had? Was it because Investors put all their money onto the stocks all at once which is why it caused this high peak?

Answers and Views:

Answer by Diogenes
It was a classic bubble-hype leading investors to overpay because prices would never drop, like the Dutch tulip boom hundreds of years ago.

Answer by jeff410
Valuations were based on eyeballs and traffic to websites instead of fundamentals. Analysts and investors thought those eyeballs would translate into profits, but they didnt.

Answer by muncie birder
Unless you were there you would not have realized how much worthless garbage was going for over $ 100 a share. One that comes to mind was Global Crossing. I do not think that it actually ever made any money. It was just one example that I recall. Intel was about $ 100 a share. Look at it now. Get the picture?