RealTime IT News

Sell-Off Continues in Tech, Internet Shares

Blue chips continued to steal the limelight from Internet and technology stocks Thursday as investors continued dumping the latter two groups amid continued warnings the sectors are overvalued.

At 12:30 p.m. Eastern, internet.com's Internet Stock Index had dove 38.07, or 3.85 percent, to 950.88 and the Nasdaq Composite had plunged 144.98 to 4,499.69. In contrast, the Dow Jones industrial average had gained 55.84 to 11,074.56.

Needless to say, some of the heaviest Internet losers were many of the stocks that have posted the biggest run-ups over the past several weeks. They included Ariba Inc. , was down 5-1/8 to 221, Cisco Systems Inc. (CSCO), was off 2-7/8 to 73-3/16, Exodus Communications Inc. (EXDS), losing 8-1/8 to 143-15/16, Go2Net Inc. (GNET) had lost 6-5/8 to 82-1/8 and Inktomi Corp. (INKT) had shed 8 to 174.

Infospace.com Inc. (INSP) had plunged 15-9/16 to 129-1/2, Juniper Networks Inc. (JNPR) was off 18-1/16 to 269-15/16, Network Solutions Inc. (NSOL) was off 15-1/2 to 165-1/2 and merger partner VerticalNet (VERT) was off 11-9/16 to 148-7/16 and Verisign Inc. (VRSN) had given up 14-1/4 to 155.

Another heavy loser Cabletron Systems Inc. (CS) had plunged 18-5/8 to 31-1/4. The networking equipment maker was downgraded from "market outperform" to "market perform" by Goldman Sachs.

Healtheon/WebMD Corp. (HLTH) was down 3-9/16 to 27-1/8 on word that several large U.S. insurers plan to team on a new site that would process insurance claims electronically.

One of the day's few success stories was Primedia Inc. (PRM), up 5-5/16 to 32-7/16. Internet incubator CMGI Inc. (CMGI) took a 5 percent stake in the firm and announced plans for the two to develop new Internet-based ventures.

Subscribe to internet.com's HotWatch, a monthly e-mail newsletter 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. 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-newsle tters