Some Big Gainers, Losers in 2000
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It's been a shaky week for Internet stocks, with more sectors losing ground than gaining, according to numbers from internet.com's Internet StockTracker e-mail newsletter due out Friday.
However, despite nagging fears of interest rate hikes and bursting bubbles, Internet stocks as a whole have been up so far this year, with internet.com's Internet Stock Index of 50 companies up 12% since Dec. 31 and nearly 19% in February.
Cavion, a provider of B2B Internet services for credit unions (there's a niche!), surged on strong Q4 earnings announced two weeks ago, while WatchGuard benefited (along with a number of other security companies) from the hacker attacks on major Web sites. Terra is seen as the strongest access provider in the Spanish market.
Natural-language online search service Ask Jeeves (ASKJ), which enjoyed a love affair with investors last fall, gained 22% to close at $138 per share in its first day of trading this year. ASKJ closed Wednesday at 63 5/16, leaving the stock down 44% for the year and 54% since Jan. 3. Even at its current price, Ask Jeeves is valued at 76x last year's revenues.
Some of the high-flying e-commerce software stocks have come crashing down in 2000. Computer equipment B2B player pcOrder.com (PCOR) was down 46% for the year through Wednesday, while Rowe.com (ROWE), which sells software that allows libraries to order books and periodicals, has dropped 51%.
Expect several more stocks from this overvalued B2B e-commerce sector to come down in the next few months.
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