Earnings Fears Lead to Steep Internet Stock Tumble
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Fears that earnings will miss the mark caused a broad market sell-off Tuesday which took its toll on Internet stocks.
Internet.com's Internet Stock Index slumped 29.99, or 5.57 percent, to 508.70. The broader indices also posted losses, with the Nasdaq Composite losing 73.18 to close at 2,322.76 and the Dow Jones industrial average plunging 218.68 to 9,671.83.
Among the day's losers was Yahoo! (YHOO), which fell 9-1/2 to close at 155-1/2 amid continued speculation the company may purchase Internet broadcaster Broadcast.com Broadcast.com (BCST)shed 4-1/2 to 112.
Software retailer Egghead.com Inc. (EGGS) rose 1-15/16 after Prudential Securities initiated coverage with a "strong buy" rating. Analyst Paul Merenbloom said he expects the stock to climb to 30 over the next year.
The company floated 5 million shares on Monday which debuted at 14. The company plans to use most of the IPO proceeds for advertising and promotions.