Earnings Disappointment Takes Down Internets
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Internet stocks finished lower Wednesday as investors continued to express worry over corporate earnings, dragging down both the ISDEX and the tech-heavy Nasdaq Composite.
Internet bellwether eBay Inc. started the downward momentum after disappointing Wall Street.
internet.com's Internet Stock Index fell 12.66, or 2.30 percent, to 538.79, the Nasdaq Composite ended off 8.98 to 2,802.49 and the Dow Jones industrial average closed up 92.76 to 10,394.89.
eBay (EBAY) plunged 13-5/16 to 138-11/16, as the company late Tuesday reported a third-quarter profit of $1.35 million, or 1 cent a share, up from $461,000, or break-even, a year ago. Before one-time charges, the company earned 2 cents a share, in line with analysts' estimates.
Just after the closing bell, Amazon.com reported a 26-cent loss for its latest quarter, 2 cents better than analysts had forecast. Those results compare with an 8-cent loss during the quarter a year ago. Amazon closed down 5-5/16 to 75-15/16.
America Online was up 2-5/8 to 119-3/8 and Yahoo! slumped 5 to 174-3/16.
What's more, James Barksdale, a director of AOL, announced he would sell 425,000 shares. The Senior Vice President of Corporate Development, Miles Gilburne, filed his intentions to sell 200,000 shares.
Exodus (EXDS) ended up 1/8 to 77-1/4. The hosting company announced that it will purchase privately-held Service Metrics for $280. The company develops technology to monitor the performance of Web sites.
Other leaders falling included BroadVision Inc. (BVSN), off 3-1/16 to 59-15/16, CMGI Inc. (CMGI) had fallen 1/4 to 103-5/16, Doubleclick Inc. (DCLK) had tumbled 3 to 125, Etoys Inc. (ETYS) was off 4-5/8 to 73-3/16 and Inktomi Corp. (INKT) had lost 7-1/8 to 95-5/8.
Talk.com (TALK) fell 3/4 to 16. The company reported a profit of 23 cents a share, which was 1 penny better than the First Call estimates. The company provides services for long-distance Net telephony.
On the IPO front, InterTrust Technologies Inc. (ITRU) surged 36-3/8 to 54-3/8. The company develops technology to copyprotect intellectual property on the Web. The lead underwriter was CS First Boston.
Finally, Akamai raised the price range of its IPO again, from $16-$18 to $21-$23. The company provides technology to speed-up the delivery of online content. The lead underwriter is Morgan Stanley.
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