Internet Stocks Lose Steam At Day's End
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After jumping early Wednesday following bullish comments from analysts, Internet stocks lost most of those gains late in the session.
Internet.com's Internet Stock Index closed up 1.85, or .34 percent, to 545.39 while the Nasdaq Composite closed down 18.69 to 2,461.60, the Dow Jones industrial average lost 126.26 to 9,787.00.
The gains came after America Online Inc. (AOL) was reiterated a "strong buy" by Prudential Securities analyst Paul Merenbloom and Shaun Andrikopoulos of BT Alex. Brown. Also, Jamie Kiggen, technology analyst at Donaldson Lufkin Jenrette reiterated AOL as his top pick.
Jonathan Cohen, who recently became Wit Capital's Internet analyst, initiated coverage of AOL with a "buy" rating and set a price target of $185 over the next 12 to 18 months.
Axent Technologies Inc. (AXNT) plummeted 8-7/16 to 24-1/16. The company on Wednesday acquired UK-based PassGo Technologies, paying about $50 million in stock. Prudential Securities also cut its rating to "hold" from "accumulate."
ZDNet is a tracking stock, designed to follow the performance of the Internet operations of technology publisher Ziff-Davis Inc. Investors in Ziff-Davis (ZD) didn't appear to be too happy about the move, sending its shares plunging 7-1/2 to 21-1/2.