1. In the Internet era, we live with much bigger markets and hence much more of a "winner-take-all" (or at least winner-take-most) economy for companies that exist primarily on the Internet. You see this over and over in different areas - there is usually one giant leader that takes the lion's share of the money, then maybe 1 or 2 frequently discussed competitors, then everyone else.
2. With this "way fewer points for second best" dynamic, most investors and business leaders are biased much more towards FOMO than fear-of-losing-money.
3. Thus, when the pandemic came along, many folks did see it as the start of a new dynamic with how people used online services. And they weren't entirely wrong, e.g. remote work is obviously much more prevalent now than pre-pandemic. But again, from a business leader's perspective, I'm sure most of them thought it would be much worse to miss out on a paradigm shift in online services than to over-invest.
Of course, any discussion about this topic should lead with the huge sloshing of money due to low interest rates that abruptly reversed. Whenever that happens you see investors pour money into risky assets as they chase yield.