Net Stocks Lose Another 4 Percent
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Internet stocks were again taking it on the chin in midday trading Wednesday as investors continued selling pricey names.
Meanwhile the Nasdaq Composite extended its losses after Goldman Sachs' Richard Sherlund lowered his fiscal third-quarter revenue forecasts for Microsoft Corp. (MSFT) to $5.75 billion from $5.95 due to a slowdown in personal computer sales.
At 12:30 p.m. Eastern, internet.com's Internet Stock Index was down 34.00, or 4.21 percent, to 772.81, the Nasdaq Composite had lost 165.08 to 3,890.82 and the Dow Jones industrial average had gained 58.09 to 11,345.19.
The ISDEX tumble was prompted by the continued selling of several leaders, including America Online Inc. (AOL), down 2-13/16 to 62-11/16, Ariba Inc. (ARBA) falling 5-5/16 to 76-1/4, Amazon.com Inc. (AMZN) had lost 2-1/2 to 60-7/8, Broadcom Corp. (BRCM) was off 12-5/8 to 164 and Broadvision Inc. (BVSN) was off 3-7/16 to 43-1/2.
FTD.com (EFTD) was up 3/16 to 2-7/8. Shares tumbled Tuesday and were opened late Wednesday after the firm announced Peter Poli, its chief financial officer, was leaving to join an unnamed Internet start-up.
Turning to good news, Checkpoint Software Technologies Ltd. (CHKP) had gained 3 to 172-1/2. The firewall maker reported first-quarter earnings jumped 77 percent to 40 cents a share. That was a nickel above analyst estimates.
E*Trade Group Inc. (EGRP) was up 3/8 to 23-13/16. The online broker earned $1.3 million in its fiscal second quarter compared to a loss of $13.3 million a year ago. That translates into a break-even quarter, much better than the 16-cent loss analysts had forecast.
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