Optimism Turns on Internet Issues
Page 1 of 1
Internet issues were lower on Wednesday amid earnings season and concerns over the current valuations of Internet companies.
The buzz continued to surround Yahoo! which reported steller numbers late Tuesday, but saw its shares sink in today's trading.
internet.com's Internet Stock Index dropped 40.57, or 4.88 percent, to 790.63, the Nasdaq Composite fell 71.28 to 3849.91 and the Dow Jones industrial average climbed 40.02 to 11551.10.
Shares of Yahoo! (YHOO) plunged 39-13/16, or 10 percent, to 357-9/16. In its earnings report Tuesday, the company warned its current level of revenue growth will not be sustainable. Still, JP Morgan raised its price target on the stock to $550 and Merrill Lynch analyst, Henry Blodget was optimistic in a research note to clients.
S1 Corp. (SONE) rose 4-3/16 to 77-1/8. Robertson Stephens Wednesday initiated coverage of the company, which provides Internet solutions for the financial services industry, with a "buy" rating.
Digex Inc. (DIGX) gained 3-15/16 to 69-1/2. The Web hosting firm signed a joint venture with Compaq Computer Corp. (CPQ) and Microsoft Corp. (MSFT) to develop new services for business customers. As part of the deal, both companies will invest $50 million each in Digex. MSFT shares dropped 3-9/16 to 105-3/16 while CPQ matured 1-1/4 to 29-1/4.
Subscribe to Internet StockTracker, the new weekly e-mail newsletter from internet.com Corp. Every Friday internet.com will deliver to your e-mail in-box the latest performance data on individual Internet companies and their competitors. Internet StockTracker will deliver to you all the statistics you need to assess the week's activity. Subscribe today at e-newsletters