RealTime IT News

Profit Taking Causes Stocks to Stumble

After setting records in the past 14 out of 17 sessions, the Nasdaq ended the day down.

internet.com's Internet Stock Index was off 4.39, or 0.62 percent, to 701.11, the Nasdaq Composite tumbled 49.44 to 3,343.12 and the Dow Jones industrial average was off 93.58 to 10,995.94.

Priceline.com (PCLN) fell 4-13/16 to 61-15/16 after airline Delta Air Lines filed with the SEC to sell 8.4 million shares, with a value of approximately $580 million.

Critical Path (CPTH) plunged 9-1/4 to 63-3/8. The high-end e-mail provider was hit by a slowdown yesterday, affecting 1.2 million out of 6.7 million mailboxes. The company also announced it purchased XETI, an encryption company. The terms of the deal were not disclosed.

Among the leaders that took it on the chin were Juniper Networks Inc. (JNPR), off 9 to 294, Yahoo! Inc. (YHOO), down 6-5/16 to 220-1/2, and Inktomi Corp. (INKT), which fell 4-5/8 to 130-1/2.

On the winning side, Net2Phone Inc. (NTOP) jumped 3-13/16 to 66-3/4 after signing a two-year, multi-million dollar marketing deal with America Online Inc. (AOL) unit CompuServe.

GoTo.com (GOTO) fell 7-5/8 to 98-1/2. The company plans to buy Cadabra, an online comparison shopping site, for $242 million in stock and $8 million in cash.

Intuit Inc. (INTU) gained 2-3/16 to 44-1/16 after joining with AOL to offer an online bill payment service.

Lycos Inc. (LCOS) was up 2-1/4 to 58-1/4. The search engine Tuesday purchased Gamesville.com for $207 million in stock plus assumption of Gamesville's stock option plan.

Healtheon/WebMD (HLTH) climbed 2-7/16 to 40. First Union Securities placed a buy recommendation on the stock, with a $45 price target.

MP3.com Inc. (MPPP) was up 1/2 to 39-3/16. The company signed a two-year deal with Freei.Net. MP3 will offer Freei.Net's free Internet access and in return will receive a link on Freei.Net's welcome screen directing them to downloadable music.

Homestore.com (HOMS) soared 18-3/8 to 77. The company signed a distribution deal with IWon.com, which is the portal site for CBS (CBS).

Internet Capital Group Inc. (ICGE) was off 12-5/16 to 170-1/8. The company filed to sell 6 million shares and $250 million in convertible subordinated notes in a secondary offering. Also, the company's board approved a 2-for-1 stock split.

Among IPOs, OpenTV Corp. (OPTV) soared 42-3/4 to 62-3/4. The set-top box software maker is a unit of MIH Ltd.

Deltathree.com (DDDC) surged 14 to 29. The company develops Net telephony products. The lead underwriter was Lehman Brothers and the company raised $90 million.

SmarterKids.com (SKDS) was unchanged at 14. The site is a portal for children's books. The lead underwriter was Hambrecht & Quist and the company raised $68 million.

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