Internet stocks plunged lower in Monday’s trading following comments made by
Merrill Lynch chief market analyst Richard McCabe.
He suggested that
investors reduce their exposure to the technology sector. That recommendation translated into heavy losses for some former high-fliers, including Internet Capital Group, Inktomi and Juniper Networks.
internet.com’s Internet Stock Index lost 78.53, or 8.42 percent, to 853.71,
the Nasdaq Composite dropped 258.25, or 5.81 percent, to 4,188.20, and the
Dow Jones industrial average gained 75.08 to 11,186.56.
The business-to-business (B2B) sector continued getting hammered; Commerce One (CMRC)
was down 20-1/2 to 119-1/2, Ariba Inc. (ARBA)
finished 12-3/4 lower at 90-3/4, and i2 Technologies (ITWO)
was off 28-7/8 to 108-1/16.
Interestingly, Safeguard Scientifics
has decided to stop investing in business-to-business Internet companies
according to an article in today’s Wall Street Journal. The company, already
well known for investments in such high-profile B2B plays as ICGE (14%),
will instead concentrate on the infrastructure sector. Management believes
that SFE will now be well positioned to benefit from the overall growth of
the Internet. Shares slipped 1-9/16 to 57-15/16 following the news.
Microsoft Corp. (MSFT)
lost 3 to 86-1/16. Published reports Monday said the company might be forced
to open the source code to Internet Explorer to computer makers to settle
antitrust allegations brought by the Justice Department and 19 states.
CMGI Inc. (CMGI)
fell 9-13/16 to 83-15/16 and Netcentives (NCNT)
was up 3-3/4 to 27-1/4. CMGI Monday took a 4.9 percent stake in the
incentive marketer and announced plans for the two to create a new loyalty
program for CMGI properties.
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