Internet issues plunged lower on Friday as investors pocketed profits and
the premiere online shopping portal, Amazon.com, announced its plans to lay
off 2 percent of its total work force.
In addition, the Labor Department reported the U.S. Employment Cost Index
rose 1.1 percent in the fourth-quarter. Most of the rise was due to
increases in wages and salaries, although benefit costs also climbed.
internet.com’s Internet Stock Index (ISDEX) lost 43.02, or 4.99 percent, to
818.80, the Nasdaq composite fell 152.83 to 3886.73, and the Dow Jones
industrial average dropped 289.15 lower to 10738.87.
L90 Inc. (LNTY)
sold 6.5 million shares at $15, rasing roughly $97 million in its initial
public offering. The online advertising network’s offering was managed by SG
Cowen Securities Corporation, Banc of America Securities LLC, CIBC World
Markets Corp. and Wit Capital Corporation. Shares bolted 8-5/8 higher to
Paine Webber started coverage of Amazon.com
with a “neutral” rating and $74 price target. In addition, AMZN announced
its plans to lay off 150 employees, or 2 percent of its total work force.
AMZN shares fell 5-13/64 to 61-47/64.
Internet Capital Group (ICGE)
lost 5 to 125. The stock continues sliding from its 52-week high of $212.
The next month will be interesting for ICGE investors however, as the online
incubator will IPO three of its high-profile partner companies: Universal
Access, eMerge Interactive and Onvia.com. Reporter@Large-Luke Fronefield
will have a research note for investors next week.