Yep. But the key is to buy a (or the) company that will bounce back! On Dec 10, 1999, there were 100 big internet-related companies, Amazon was just one of those 100. Most failed abjectly (went to zero), some muddled along till today (Cisco for example), and only one or two were blockbusters that provided a 30% CAGR over the next few decades (Amazon for example).
By the way, this is related to the VC model of investing. They invest in all 100 of them in their infancy. They don’t care if 90+ of them go to zero as long as they hold the one or two that provide 5,000+% returns over time.