RealTime IT News

Priceline Sends Internet Stocks Lower

An earnings warning from Pricline.com sent Internet and technology stocks lower on Wednesday, but the Dow and S&P 500 finished unchanged.

The ISDEX fell 28 to 750, but off its low of 737, and the Nasdaq lost 32 to 3656. The S&P 500 slipped half a point to 1426, and the Dow was down 2 to 10,628. Volume rose to 1.17 billion shares on the NYSE and 1.94 billion on the Nasdaq. Advancers led 14 to 13 on the NYSE, but decliners led 24 to 15 on the Nasdaq. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our new after hours trading site.

Priceline fell 7 7/8 to 10 3/4 after warning that third-quarter revenues will be $340-$345 million; analysts expected $360-$380 million. The company cited a shortfall in revenue from the sale of airline tickets. Cheap Tickets fell 1 1/16 to 9 1/2 in sympathy. A technical comment and chart on Priceline: When Priceline was at $25, we said it looked like there could be further downside ahead, and here's why: the stock broke a descending triangle, a flat-bottomed pattern with a descending upper boundary, at $32 back in July. As the size of the pattern was 18 points from peak (50) to trough (32), that gave the stock downside potential to $14, or 18 points below the break.

Yahoo dropped 11 13/16 to 90 5/8, breaking important support at 99 1/2-99 3/4, the May and August bottoms. eBay lost 7 1/16 to 63 5/8.

Amazon.com fell 2 3/16 to 37 9/16. The Washington Post ran a front-page story accusing the company of using dynamic pricing, charging some users more than others based on ability to pay.

Bellwether Cisco Systems recovered 1 13/16 to 57 on a better-than-expected loss from 3Com .

TIBCO Software rose 4 1/4 to 89 1/4 after reporting earnings of 7 cents a share, 2 cents above estimates.

VerticalNet gained 2 7/8 to 33 1/8 on a Lehman Brothers Buy rating. However, Robinson Humphrey downgraded the stock to Outperform based on an email survey that found a large percentage of storefronts are undecided about whether to renew.

Commerce One gained 1 3/8 to 76 1/2 on news of an expanded partnership with Microsoft .

GoAmerica gained 1/16 to 8 1/4 on a partnership with Sierra Wireless to provide wireless data and Internet access for the Handspring Visor handheld computer.

ScreamingMedia.com gained 1 1/8 to 9 3/4 on a partnership with BroadVision .

FreeMarkets dropped 6 1/4 to 64 after trading as high as 74 3/8 on comments from Merrill Lynch that the company could beat revenue estimates by 15-20%.

Some technical comments on the market: Note: We will now be including charts with the technical market commentary; just click on the links in the story below to go to them. If you have trouble accessing the charts via the email newsletter version, try this link: