Internets Plunge As Nasdaq Falls Off Record Pace

Profit-taking and a rise in bond yields were prompting a steep sell-off in the Internet sector Tuesday, putting the Nasdaq’s record streak in jeopardy.’s Internet Stock Index had plunged 25.32, or 3 percent, to 820.06, the Nasdaq Composite was off 52.37 to 3,605.80 and the Dow Jones industrial average was off 19.57 to 11,173.02.

Most leaders were taking it on the chin, including Ameritrade Holding Corp. (AMTD) off 2 to 26, Inc. (AMZN) down 3-11/16 to 98-13/16, Doubleclick Inc. (DCLK) falling 3-7/8 to 194-5/8, eBay Inc. (EBAY) had tumbled 6-1/4 to 155-1/4, Go2Net Inc. (GNET) tumbling 8-11/16 to 91-3/8 and Infospace (INSP) was down 11-15/32 to 140-11/16.

Yahoo! Inc. (YHOO) was off 14-5/8 to 336-7/16 amid reports it is eyeing a broad distribution pact with Kmart Corp. (KMT). According to reports, Yahoo! may offer co-branded Internet access with Kmart that would be promoted on the retailer’s e-commerce site and in its stores.

Despite the widespread red ink, there was good news to be found and it was driving several Net stocks higher. Digital Island Inc. (ISLD) had leaped 13-1/4 to 143-3/8. Digital Island’s Sandpiper Networks unit expanded an existing deal with AOL to use Sandpiper servers which streamline content delivery. Inc. (MYPT) was up 6-1/2 to 49-1/4. The Net marketing company reported Tuesday its transaction volume was up 46 percent during the holidays compared to average monthly numbers.

Exodus Communications Inc. (EXDS) was up 2-1/16 to 169-3/4. Salomon Smith Barney raised its rating on the Internet software firm to “buy” from “outperform” and set a $215 price target. Inc. (LTWO) had jumped 1-9/32 to 4-5/16. The company, which offers tutoring online, announced it will add a new course on Linux.

ALL NEW!’s HotWatch a monthly e-mail subscription for $99,
featuring Internet Stock Report’s top 10 noteworthy Internet stocks for the
month. Each month you will receive in-depth analysis on the top 10 Internet
stocks to watch with the information you need to assess the fast-paced nature
of Internet stocks. Staying on top of market changes in the Internet Stock
market is what counts. For $99 per year, you receive 12 timely issues sent to
you by e-mail. Don’t wait, our next issue will be out before you know it with a
whole new perspective on the market. Sign up today at: e-newsletters

Get the Free Newsletter!

Subscribe to our newsletter.

Subscribe to Daily Tech Insider for top news, trends & analysis

News Around the Web