Net2Phone Only Bright Spot in Bleak Session
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Inflation fears brought on by new statistics that show labor costs rose faster than expected in the second quarter prompted a broad sell-off on Wall Street that left very few players spared.
internet.com's Internet Stock Index tumbled 19.92, or 4.05 percent, to 472.46, the Nasdaq Composite plunged 65.83 to 2,640.01 and the Dow Jones industrial average dove 181.10 to 10,790.97.
Net2Phone (NTOP) jumped 11-9/16 to 26-9/16 on their first day of trading. The company sold 5.4 million shares at $15 each on Wednesday. Lead underwriters were Hambrecht & Quist, Bear Stearns and BT Alex. Brown.
None of the Internet leaders were spared. Amazon.com Inc. (AMZN) lost 4-3/16 to 101-9/16, America Online Inc. (AOL) shed 3-1/2 to 99-1/4, CMGI Inc. (CMGI) gave back 4-5/8 to 93-1/2, Yahoo! Inc. (YHOO) slumped 6 to 137 and Priceline.com Inc. (PCLN) off 4-1/2 to 80-1/2.
Earnings continued to flow through the sector and had a mixed effect.One of the heaviest losers was USinternetworking (USIX) which plunged 7-5/8 to 28-5/8. The company reported a net loss of $23.6 million, or 66 cents a share although second-quarter revenues increased 52 percent sequentially.
StarMedia Network (STRM) lost 1-1/8 to 41-3/4. The company reported a second-quarter loss of 41 cents a share. That's 8 cents better than forecasts.
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