Investors Continue Moving Away from Internet Stocks
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Internet stocks continued to decline Wednesday as investors broadened their focus to include stocks with lower valuations as well as cyclical big cap stocks and small-cap issues.
Internet.com's Internet Stock Index fell 39.48, or 6.20 percent, to 597.51 while the Nasdaq Composite shed 52.15 to 2,550.26 and the Dow Jones industrial average gained 13.74 to 10,845.45.
Amazon.com Inc. (AMZN) fell 13 to close at 192-7/8. In after-hours trading on Instinet, the stock had slumped 2-7/8 to 190. After the bell, the company reported an operating loss of 23 cents a share, beating analyst forecasts of a 29-cent loss. Amazon's revenues grew to $294 million from $87 million in the quarter a year ago. Customer accounts increased from 6.2 million to 8.4 million.
Movers included DoubleClick Inc. (DCLK) which shed 13 to 135-1/2, falling for a second day. The company fell 13 percent Tuesday after reporting first-quarter earnings that only matched analysts' expectations.
Internet provider Mindspring Enterprises Inc. (MSPG) lost 13-5/8 to 102-11/16 despite reporting better-than-expected earnings this week. Still, Mindspring shares have climbed an impressive 72 percent this year.
Shares of Excite Inc. (XCIT) fell 9-3/4 to 146-7/8 and @Home Corp. (ATHM) slumped 10-1/4 to 144. @Home's buyout of Excite was approved by the Justice Department and Federal Trade Commission on Wednesday, clearing the way for a shareholder vote on May 28.
Investors continued to be kind to Internet IPOs. Razorfish Inc. (RAZF) jumped 12-7/8 to 46-3/8 Wednesday on its second day of trading. The company, which designs Web sites for electronic commerce companies, sold 3 million shares raising $48 million on Monday.
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