RealTime IT News

Synchronized Sinking: Once Again, All 'Net Sectors Fall

Two weeks ago, after a promising start to September, all 13 Internet sectors lost ground. This dismal performance was repeated last week.

And this week? That's right, it's a (red) hat trick, as 'Net groups are shut out for the third consecutive time.

Here's hoping this is the darkest before the dawn, but my gut feeling is that continued investor anxiety over Q3 earnings will hold down 'Net tickers at least until the real numbers start rolling in.

Maybe after that the market will get caught up in the annual fourth-quarter, holiday spending excitement. Last year's Q4 saw a run-up that extended across most sectors, with the glaring exception being the group expected to benefit most from seasonal shopping frenzy - e-tailers. Shares of online merchants were hammered last fall, despite a continuing stream of news stories and research reports touting record online shopping statistics.

Back then, investors questioned the viability of many online retailers. This year, they have even more reason to do so, as many e-tailers are almost out of cash and trading at record low stock prices.

* Market Cap figure is in millions unless otherwise noted.

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PERFORMANCE BY SECTOR
                            Ave. 7-Day
                             % Change

Wireless                      -3.8%
Performance Software          -6.1%
E-commerce Enablers           -6.5%
Security                      -7.9%
Speed/Bandwidth               -8.2%
E-tailers                     -9.8%
Advertising/Marketing        -11.0%
Financial Services           -11.6%
Content/Communities          -12.2%
Internet Services            -12.2%
Consultants/Designers        -12.7%
ISPs/Access Providers        -12.8%
Search/Portals               -14.9%

TOP 10 GAINERS             7-Day % Gain     Category

CKCM    Click Commerce        39.20%        E-Commerce Enablers
NTGX    net.Genesis           38.20%        Performance Software
OTGS    OTG Software          36.20%        Performance Software
IMNY    I-Many                34.90%        E-Commerce Enablers
HAND    Handspring            30.50%        Wireless
DTEC    Delano Tech.          27.70%        Performance Software
RSNT    Resonate              27.30%        Speed/Bandwidth
SSSW    SilverStream          27.30%        Performance Software
WQNI    WorldQuest            26.70%        Internet Services
INSW    InsWeb                22.60%        E-tailers

TOP 10 LOSERS              7-Day % Loss      Category

INTW    InterWorld            -62.50%        E-Commerce Enablers
PCLN    priceline.com         -54.10%        E-tailers
EPRS    Eprise                -44.70%        Performance Software
SQSW    Sequoia Software      -42.60%        Performance Software
LUMT    Luminant Worldwide    -42.40%        Consultants/Designers
ARTD    Artistdirect          -42.00%        Content/Communities
AWEB    Autoweb.com           -39.70%        E-Commerce Enablers
IPIX    Internet Pictures     -34.90%        Performance Software
IVIL    iVillage              -34.70%        Content/Communities
BWAY    Breakaway Sol.        -34.50%        Internet Services

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                             WIRELESS PRODUCTS/SERVICES

                      9/27   7-Day   7-Day   1-Month   YTD   Market
       Company       $Close $Change %Change  %Change          Cap

HAND  Handspring       67.31  15.75   30.5%   95.8%    N/A     8.4B
PHCM  Phone.com       120.38  19.00   18.7%   39.1%    6.9%   10.0B
GOAM  GoAmerica        8.25    1.06   14.8%  -27.9%    N/A   423.9
IIIM  i3 Mobile         6.50   0.06    1.0%  -26