Investors were coming back into blue chips Monday as fears over inflation were eased by falling bond yields. However, Internet stocks weren’t as lucky as the sector had slumped in midday trading.
Just before midday, internet.com’s Internet Stock Index was off 6.74, or 1.37 percent, to 484.07, the Dow Jones industrial average had climbed 118.42 to 10,670.98 and the Nasdaq Composite was up 14.75 to 2,567.40.
Internet ad firm DoubleClick Inc. (DCLK) was down another 4-7/16 to 71-1/2. Investors continue to worry a sale of AltaVista to CMGI could hurt the company going forward. AltaVista and CMGI both confirmed Friday the two are in talks that could lead to an AltaVista sale. Currently, AltaVista accounts for about 30 percent of DoubleClick’s revenues. Many are speculating CMGI, which owns DoubleClick competitors Adsmart and Engage, would terminate AltaVista’s deal and switch to its own solutions.
Healtheon Corp. (HLTH) lost 8-7/16 to 71-7/8. Barron’s is reporting that Microsoft, which owns a large stake in Healtheon, is looking to sell about 1.8 million shares before Healtheon’s merger with WebMD goes through. Even after the sale, Microsoft would control 17.2 percent of Healtheon.
Online broker Ameritrade Holding Corp. (AMTD) lost 3-7/8 to 81-5/8 after announcing it will sell $250 million in stock and $10 million in debt in a secondary offering. The money will be used to fund advertising and possible acquisitions.
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