'Making Money' host Charles Payne discusses what's causing the market to pull back.

If you were investing in the late 1990s, you’ll remember the euphoria of the dot-com boom. Anything with a ".com" at the end of its name could raise millions in capital and see its stock price double or triple overnight.

Investors believed the internet would change everything – which, to be fair, it eventually did. But between 2000 and 2002, that dream turned into a nightmare when the Nasdaq lost nearly 80% of its value, wiping out trillions of dollars in wealth.

Today, with artificial intelligence leading headlines and fueling investor enthusiasm, many people are wondering if we are about to experience another dot-com bust?

AI feels like the new internet – a transformative technology that promises to upend industries from healthcare to finance to entertainment. ( / iStock)

The Parallels to the Late ’90s

There are some undeniable similarities between the two periods. Back then, internet companies with little more than a business plan and a website were valued at astronomical levels. Today, AI feels like the new internet – a transformative technology that promises to upend industries from healthcare to finance to entertainment. The narrative is powerful, and capital is rushing in. Recently, Palantir which is a fan favorite stock right now, traded with a PE of 522!

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