RealTime IT News

Wind Shears Whip Internet Stocks

Internet stocks in recent days have been hit by the market equivalent of wind shears, as increasing bullishness about 'Net stocks has clashed with investors' urge to take profits and re-tool their portfolios.

It has made for a rough ride of late, with 'Net stocks soaring one day and plummeting the next, and sometimes doing both within the same trading session.

In general, the larger Internet stocks have handled the turbulence better than either smaller 'Net craft or other high-tech offerings. Since Dec. 8, internet.com's Internet Stock Index - which includes numerous 'Net firms with multibillion-dollar market capitalizations - has risen 3.6 percent.

In contrast, figures from internet.com's latest weekly Internet StockTracker newsletter, which tracks the performance of slightly more than 300 'Net tickers, shows the vast majority down since Dec. 8. And the tech-heavy Nasdaq has slipped 4.7 percent.

Even some e-commerce IPOs have seen their aftermarket flights shortened by the choppy weather. Preview Systems (PRVW), which sells products designed to allow companies to securely distribute and license digital property, soared in its Dec. 8 debut, finishing at 83-3/4, or 299 percent above its $21 per share offer price. By Wednesday, just a week later, shares of PRVW dipped below 50.

Inventory management software provider Retek (RETK) zoomed off the launch pad on Nov. 18, more than doubling its IPO offer price of $15 per share to close at 32 9/16. It continued up, climbing as high as 87 on Dec. 8 (there's that date again). On Friday afternoon it was trading at 63-1/2.

Until further notice, investors are advised to keep their seat belts buckled.

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