RealTime IT News

Nets And Techs Continue To Slide

Internet and technology stocks fell sharply for the second straight day, as investors continued to take profits in companies posting better-than-expected numbers.

The ISDEX fell 22 to 788, and the Nasdaq dropped 121 to 4055. The S&P 500 declined 11 to 1482 and the Dow lost 43 to 10,696. Volume declined slightly to 906 million shares on the NYSE and 1.43 billion on the Nasdaq. Declining issues led 16 to 11 on the NYSE and 25 to 14 on the Nasdaq. Traders were wary ahead of Fed Chairman Alan Greenspan's Senate Banking Committee testimony on Thursday after yesterday's stronger-than-expected Consumer Price Index report. For earnings reports, visit our earnings calendar and reported earnings.

The cascade of earnings reports continued after the bell on Wednesday. Excite@Home reported a second-quarter loss of 11 cents a share, a penny better than expected. The stock was unchanged after hours after slipping 11/16 to 19 in the regular trading session. Exodus Communications fell 5/8 to 50 3/4 in regular trading, but rose to 52 after the bell after reporting a second-quarter loss of 10 cents, 2 cents better than expected. Check Point Software fell 25 11/16 to 224 7/8 in regular trading, but rose to 230 after hours on second-quarter earnings of 50 cents a share, 8 cents better than expected. About.com fell 3 1/2 to 28 1/4 in regular trading, but rose to 32 in after-hours trading after reporting a second-quarter loss of 33 cents a share, 6 cents better than analysts expected.

E.piphany fell 13 1/2 to 121 1/2 during regular trading, but rose to 125 after hours after reporting a second-quarter loss of 12 cents, 15 cents better than expected. Critical Path declined 4 11/16 to 63 1/4 in regular trading, and fell further to 58 in light after-hours trading after beating estimates by 2 cents with a 34-cent loss. Extreme Networks reported fourth-quarter earnings of 9 cents a share, 14 cents better than estimates, and declared a 2-for-1 stock split. The stock fell 13 5/16 to 116 during the regular session, but rose to 123 after hours.

Companies that beat estimates after the bell on Tuesday fared poorly in Wednesday's trading session.

Commerce One reported a loss of 10 cents a share, 3 cents better than estimates, and revenues rose 1,400% to $62.7 million. But the stock dropped sharply, off 11 1/8 to 55 7/16, on concerns about sequential license growth and market share. ABN Amro and Donaldson, Lufkin & Jenrette reiterated Buy ratings on the stock and made positive comments about growth in new customers and high-margin network revenue. Technical note: the stock's recent breakout from a three-month symmetrical triangle remains in effect as long as the stock stays above the breakout point of $52. However, it appeared to form an Island reversal (a gap on either side of its recent top) today; not necessarily a huge negative, but a development that bears watching.

DoubleClick fell 2 11/16 to 32 13/16 despite reporting a second-quarter loss of 3 cents a share, 2 cents better than estimates. But DLJ noted that the numbers were driven by better-than-expected interest income. ING Barings and USB Piper Jaffray downgraded the stock on concerns about second-half growth. For more on DoubleClick's earnings, click here.

RealNetworks lost 9 1/8 to 48 7/8 despite reporting earnings of 6 cents a share, a penny better than expectations. CS First Boston reiterated a Buy on the stock. Broadcom lost 9 3/4 to 236 despite beating estimates by 4 cents with 23-cent second-quarter earnings. Merrill Lynch rei