eBay, Jobs Data Scare Internet Investors
Page 1 of 1
Another outage by online auctioneer eBay combined with a stronger-than-expected employment report caused Internet stocks to turn south in afternoon trading and erase all the day's gains.
internet.com's Internet Stock Index tumbled 12.91, or 2.98 percent, to 420.66, the Nasdaq Composite lost 17.86 to 2,547.97 and the Dow Jones industrial average slumped 79.79 to 10,714.03.
The Labor Department said the nation's unemployment rate was 4.3 percent in July. The government also said 310,000 non-farm jobs were added in July. That's much higher than the 199,000 economists were expecting.
eBay Inc. (EBAY) tumbled 9-5/8 to 83-1/4. The company's site went down on Friday and was still not operational by late afternoon. eBay released a short statement blaming the situation on a network problem and said all auctions that would have ended between 7:20 a.m. Eastern to the time service is restored will be extended. Fees for auctions scheduled to end during the outage will be refunded.
Goldman Sachs Internet analyst Michael Parekh Friday upgraded Yahoo!, putting the company on its recommended list. Parekh also reiterated his "buy" rating on AOL.
On Friday, AOL sealed partnerships with MindSpring Enterprises Inc. (MSPG) and EarthLink Network (ELNK). The two ISPs will make available co-branded versions of AOL's Instant Messenger service to their subscribers. MindSpring added 2-13/16 to 28-13/16
The day's only Internet IPO also slumped. Tumbleweed Communications (TMWD)only gained 1/16 to 12-1/16. The company, which provides secure Internet communications services, floated 4 million shares at $12. Credit Suisse First Boston was the lead underwriter.
ALL NEW! internet.com's HotWatch a monthly e-mail subscription for $99, featuring Internet Stock Report's top 10 noteworthy Internet stocks for the month. Each month you will receive in-depth analysis on the top 10 Internet stocks to watch with the information you need to assess the fast-paced nature of Internet stocks. Staying on top of market changes in the Internet Stock market is what counts. For $99 per year, you receive 12 timely issues sent to you by e-mail. Don't wait, our next issue will be out before you know it with a whole new perspective on the market. Sign up today at: e-newsletters