Internet stocks were joining all the major indices in a downward spiral in midday trading Tuesday as lower bond prices were taking a toll on equities.
Just before noon, internet.com’s Internet Stock Index had dropped 17.91, or 4.42 percent, to 387.37, the Nasdaq Composite was off 54.13 to 2,464.85 and the Dow Jones industrial average was off 98.46 to 10,609.24.
Despite all its recent troubles, online auctioneer eBay Inc. (EBAY) was one of the very few Internet issues in the positive column. Shares were up 1-3/16 to 80-1/3 as investors were applauding the company’s moves to strengthen its technology staff. Also, Morgan Stanley Dean Witter’s Mary Meeker reiterated her “outperform” rating. In a research report, Meeker characterized eBay’s growth opportunities as “impressive” and said she looks for notable fourth-quarter numbers.
The rest of the familiar names were in the red, with America Online Inc. (AOL) down 4 to 81-9/16, Amazon.com Inc. (AMZN) off 2-7/8 to 82-5/8, CMGI Inc. (CMGI) falling 4-1/4 to 69, Real Networks Inc. (RNWK) tumbling 3-3/8 to 64-1/4 and Yahoo! Inc. (YHOO) slumping 3-11/16 to 117-1/2.
Stamps.com (STMP) was off 2-9/16 to 29-1/8 following a big run-up on Monday. Stamps.com was one of two companies to receive approval to begin offering Internet-based postage services.
On Tuesday, BancBoston Robertson Stephens reiterated its “buy” rating on Stamps.com.
Online magazine Salon.com (SALN) had plunged 1-1/2 to 7-1/4. The company, which reported first quarter results late Monday, said revenues more than doubled. However, losses countinue to mount as it spends aggressive to build its business. The company lost $16.1 million, or $10.10 a share, compared to a loss of $1.4 million or $3.75 a share a year ago.
Razorfish Inc. (RAZF) was off 2-3/4 to 25-1/2. On Tuesday, the digital communications company acquired i-Cube, a provider of electronic business services, for $677 million.
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