RealTime IT News

Profit Worries Send Investors Scurrying

Investors worried about next month's earnings reports abandoned shares of Internet and technology companies on Monday.

The Nasdaq dropped 106 to 3767 and the ISDEX fell 40 to 727, as an earnings warning from Citrix Systems outweighed a positive preannouncement from Corning. The Dow declined 49 and the S&P 500 fell 10 points. Volume was a light 755 million shares on the Big Board, where decliners barely edged advancers. Nasdaq volume was 1.27 billion, with decliners leading 25 to 15. Traders awaited Wednesday's Consumer Price Index, which is expected to show a 0.2% increase.

Share of DoubleClick fell 6 to 44 1/16 on concerns that the stock market decline and weak IPO market could hurt revenues. Other online advertising and marketing firms also fell. 24/7 Media declined 2 5/16 to 16 13/16, ValueClick lost 2 3/4 to 12 and Engage fell 1 45/64 to 16 25/32. After the close, Engage announced that it lost 22 cents a share in the 3rd quarter, beating Zacks estimates of a loss of 28 cents. The stock rose to 17 1/2 in after-hours trading.

Internet infrastructure plays rose on the Corning news. Corning gained 18 to 230. JDS Uniphase rose 5 1/2 to 116 1/16 and Juniper Networks advanced 9 to 233 1/16. Shares of recent IPO Sonus Networks soared to a new high, up 20 7/8 to 112 7/8. Sycamore Networks gained 4 7/16 to 102 1/8 after Donaldson, Lufkin & Jenrette reiterated a buy rating and raised its price target to $110. Shares of ZipLink soared 2 3/4 to 7 7/8.

Shares of MicroStrategy cratered after the stock's huge recent run-up, falling 23 1/2 to 38 3/4. The company is rumored to be close to securing a round of $100 million in financing. However, Merrill Lynch said it sees no change in the company's fundamentals or financing situation.

Shares of Caldera Systems gained 2 5/8 to 14 3/8 on news that IBM will offer some Thinkpad laptop computers with Caldera's OpenLinux 2.4 operating systems.

Onvia.com rose 1 9/16 to 10, down from an intraday high of 11 5/8, after announcing it had agreed to buy Zanova Inc., a provider of business Internet software, for $21 million in stock.

Shares of iBasis soared 7 1/2 to 32 7/8 after announcing that China Mobile Telecommunications has chosen The iBasis Network for global Internet telephony.

eToys fell 5/32 to 6 13/32 after announcing that it will buy certain assets of eParties, a unit of eCompanies, for $1.6 million in stock.

Shares of IntraWare rose 27/32 to 16 31/32 after announcing that it will buy Janus Technologies for $24 million to complement its hardware and software online procurement business.

Shares of leading Internet stocks headed lower.

eBay fell 6 21/64 to 66 27/32. The online auction site has come under fire recently for bogus bids and competitive business practices. Shares of Yahoo! fell 5 3/4 to 137 7/16.

Shares of America Online continued to show weakness, falling 2 to 52 9/16 on a SoundView downgrade from Strong Buy to Buy, on concern about Time Warner fundamentals. Amazon.com fell 3 7/8 to 48 5/16.

Shares of Ariba fell 4 27/64 to 75 1/4. The stock failed to break out of a wide two-month trading range, ranging from 49 to 83. Shares of Commerce One