RealTime IT News

Mid-Term Report Cards Show Most Internet Sectors Flunking

NOTE: Rather than focusing on the weekly performance of 'Net stocks, this week's Internet StockTracker focuses on the year-to-date performances of nearly 400 Internet stocks across 13 Internet sectors. To have Internet StockTracker delivered to you as a free weekly e-mail text newsletter, clickhere.

We all know that Internet stocks suffered a meltdown this spring after several months of torrid gains. But even with that knowledge, the numbers below are hard to comprehend.

For starters, five of our 13 sectors lost more than 50% of their value this year through June. Let me emphasize: I'm not talking about stocks dropping 50% or more from their peak prices in early March. No, the dismal figures you see in this week's StockTracker take into account the big run-up in 'Net stocks that lasted for most of Q1.

Out of 13 sectors, only two -- Wireless Products/Services and Security -- are up through Q2. And we may have only the hackers to thank for the latter, since shares in several security vendors climbed after two separate waves of hacker attacks on Internet properties and e-mail networks.

On the other end of the list, E-tailers on average have lost nearly two-thirds of their value this year, with Content/Communities close behind. What can we expect from each sector in the second half? Read on...

ONE MORE NOTE: Many of the stocks listed below have no percentage figures for YTD. That's because they didn't go public until this year, and thus could not be included in the YTD sector averages. But as you can see from the 3-month averages of some of these stocks, their inclusion wouldn't brighten the picture a whole lot.

Market Cap figure is in millions of dollars unless otherwise noted.

                              Ave. YTD
                              % Change

Wireless Products/Services     +22.5%
Security                       +13.6%
Speed/Bandwidth                 -9.9%
Consultants/Designers          -29.8%
Performance Software           -30.4% 
Internet Services              -38.5%
ISPs/Access Providers          -41.6%  
E-commerce Enablers            -48.6%
Search/Portals                 -50.1%
Financial Services             -54.4%
Advertising/Marketing          -54.7% 
Content/Communities            -62.1%
E-tailers                      -64.9%

TOP 10 GAINERS               YTD % Gain    Category

AETH   Aether Systems          186.2%      Wireless Products/Services
GENI   GenesisIntermedia       181.5%      Consultants/Designers
JNPR   Juniper Networks        161.7%      Speed/Bandwidth
DLK    Datalink.net            141.4%      Wireless Products/Services
TIBX   Tibco Software          114.2%      Performance Software
CHKP   Check Point Software    113.1%      Security
TERN   Terayon                 108.4%      Speed/Bandwidth
WGRD   WatchGuard               85.0%      Security
IDTC   IDT                      83.2%      ISPs/Access Providers
BRCM   Broadcom                 63.8%      Speed/Bandwidth

TOP 10 LOSERS                YTD % Loss    Category
TCTY   Talk City               -93.9%      Content/Communities
INSW   InsWeb                  -91.5%      E-tailers
ESTM   E-Stamp                 -91.4%      E-tailers
PLRX   PlanetRx.com            -89.5%      E-tailers
ROWE   Rowecom                 -88.9%      E-Commerce Enablers
FSHP   FreeShop.com            -87.4%      Advertising/Marketing
PFSW   PFSweb                  -87.3%      E-Commerce Enablers
PASA   quepasa.com             -87.0%      Content/Communities
EGRT   Egreetings              -86.2%      Internet Services
BGST   BigStar                 -86.0%      E-tailers


                          WIRELESS PRODUCTS/SERVICES

                        6/30      YTD     3-mo.    Market