Economic Data Takes Toll on Internet Stocks
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Stocks were sent lower across the board Friday after inflation fears were ignited after the latest consumer price index data suggested higher interest rates could be on the horizon.
Internet.com's Internet Stock Index lost 14.33, or 2.44 percent, to 564.39, the Dow Jones industrial average lost 193.87 to 10,913.32 and the Nasdaq Composite lost 54.13 to close at 2,527.87.
In his weekly update on the sector, BancBoston Robertson Stephens Internet analyst Keith Benjamin said Internet stocks may fall up to 25 percent before the summer. However he said certain stocks, such as Lycos Inc. (LCOS) and Ticketmaster-Online CitySearch (TMCS), still look attractive.
Not all stocks ended in the red, however. Healtheon Corp. (HLTH) soared 10 to 57. The company, founded by Netscape co-founder Jim Clarke, is reportedly near a merger with WebMD, which also provides medical information and services on the Internet.
Cable Internet provider @Home Corp. (ATHM) ended up 13/16 to 150-1/8 after being as high as 156-1/2 earlier in the session. Late Thursday, @Home and Microsoft announced they would work together to speed the deployment of cable Internet access to customers served by small and mid-size firms.
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