RealTime IT News

Nets, Techs Fall Again On Earnings Worries

It was a familiar story for many Net stocks on Thursday: Company beats estimates. Investors scouring the report find something they don't like. Stock gets crushed.

Amazon.com and VerticalNet were just two of the stocks facing that scenario. Tech stocks also dropped, on earnings warnings from Nokia and WorldCom.

The ISDEX fell 31 to 740. The Nasdaq lost 117 to 3870, right at its 200-day moving average. The S&P 500 slipped 2 to 1449 after rising as much as 12 points in the first hour of trading. The Dow bucked the trend, rising 33 to 10,549 on strength in oil and financial shares, but was 90 points off its high. Volume rose to 560 million shares on the NYSE and 810 million on the Nasdaq. Decliners led by 13 to 12 on the NYSE and 26 to 9 on the Nasdaq. The second-quarter Employment Cost Index came in in line with estimates at a 1% gain, but Durable Orders for June came in at the highest level in 9 years. Second-quarter GDP will be reported tomorrow. For earnings reports, visit our earnings calendar and reported earnings.

Amazon.com fell 5 9/16 to 30 1/2 after reporting a second-quarter loss of 33 cents a share, 2 cents better than estimates. But revenues came in at $578 million, below estimates of $585 million. Analysts lined up to downgrade the stock, including the analyst most associated with the stock, Merrill Lynch's Henry Blodget. He downgraded the stock from near-term Buy to near-term Accumulate.

InfoSpace announced that it is buying profitable Go2Net for 1.82 shares for each share of GNET. InfoSpace also announced a second-quarter loss of 1 cent per share, a nickel better than estimates. Investors voiced their disapproval, sending shares of Go2Net higher by only 1 13/16 to 62 3/8, and punishing InfoSpace, down 11 15/16 to 35 13/16.

VeriSign reported earnings of 7 cents a share, 9 cents better than estimates. But the stock fell 5 15/16 to 173 1/4.

VerticalNet reported earnings of 23 cents a share, 7 cents ahead of estimates. But the stock fell 7 1/8 to 49 5/8. Lehman Brothers reiterated Buy, but lowered its price target from $175 to $105 and raised its fiscal 2000 loss estimate by 8 cents to minus 84 cents.

JDS Uniphase reported earnings of 14 cents a share, 2 cents better than expected. The stock, which was added to the S&P 500 last night, was off 2 7/16 to 133 1/2. Sands Brothers lowered the stock from Buy to Neutral based on the earnings report and the stock's recent run-up. The stock has been struggling to stay above its recent 130-131 breakout point.

WebMethods beat estimates by 3 cents with a 16-cent loss. But the stock fell 19 3/16 to 113 15/16. NBC Internet reported a loss of 81 cents, 4 cents better than forecasts. The stock lost 1 17/64 to 10 1/4.

Looksmart reported a second-quarter loss of 9 cents a share, 5 cents better than estimates. The stock rose 21/64 to 21 3/8. Covad beat estimates by 13 cents with an 86-cent loss, and the stock gained 1 1/4 to 18 15/16.

Software.com fell 9 1/8 to 110 1/2 despite beating estimates by 8 cents with 8-cent earnings. MicroStrategy missed by a penny with a loss of 54 cents. The stock dropped 7 3/16 to 22 13/16.

EarthLink beat estimates by 7 cents with a 29-cent loss, yet declined 1 1/8 to 13 9/16. Women.com reported in line with estimates at a 20-cent loss, and declined 11/16 to 3 5/8.

Register.com beat estimates by 2 cents with a 3-cent loss, but lost 3 1/8 to 27 5/8. Ramp Networks missed by 8 cents with a 33-cent loss, and the stock dropped 2 3/4 to 6