Worries over the earnings outlook for Cisco Systems Inc. were sending Internet stocks lower Wednesday after the networking giant warned future sales growth may slow.
At 12:45 p.m. Eastern, internet.com’s Internet Stock Index was off 5.73, or 0.71 percent, to 799.24, the Nasdaq Composite had jumped 22.41. to 3,594.07 and the Dow Jones industrial average was up 93.59 to 11,253.76.
Cisco Systems Inc. (CSCO) had dropped 2-5/16 to 95-5/8 after slumping as low as 92-7/8 earlier in the session. The No. 1 maker of networking equipment said in a regulatory filing sales growth in future quarters may slow. Immediately after the filing was released, Cisco cautioned the warning wasn’t necessarily cause for alarm and many analysts agreed, saying investors had initially overreacted.
Another day, another acquisition for Internet incubator CMGI Inc. (CMGI). Shares were off 2-1/8 to 203-5/8 after the company announced it was purchasing yesmail.com. The company provides e-mail-based permission marketing.
Also, US Bancorp Piper Jaffray initiated coverage on CMGI with a “strong buy.”
E-Stamp Corp. (ESTM) had jumped 4-3/8 to 31-1/8. The Internet postage company Wednesday signed a deal with Microsoft Corp. (MSFT) making it the exclusive postage provider on some of Microsoft’s small-business Web sites.
CacheFlow Inc. (CFLO) had slumped 5-7/16 to 136-1/16. The company, which makes equipment to optimize Web page delivery, reportd a fiscal second-quarter loss of $2.35 a share compared to 62 cents a year ago. Revenues jumped 400 percent to $4.8 million.
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