Market Drops Across All The Boards

The overall market takes its lead again from the unending barrage of interest rate hike fears with the Dow, NASDAQ and ISDEX losing ground today. The current ISDEX value is 472.07 with a change of-26.62(-5.34%).

  • CMGI (NASDAQ:CMGI) stock drops 12% to $89.75 per share on two things: 1) weaker-than-expected earnings and 2) a weaker IPO market for its stable of Internet investments. The trigger was its third-quarter losses reported June 10 when the firm posted a worse-than-expected loss for its fiscal third quarter, $0.30 loss per share vs. First Call consensus loss of $0.13. Revenue jumped to $43.7 million vs. $18.1 million for the quarter ending April 30 last year.

    I think the two factors above are concern enough for the short term on Internet venture investor CMGI but I also believe that sustainable value for CMGI relies more on long-term thinking than a market mood this summer. Call me cautiously optimistic.

  • eBay (NASDAQ:EBAY) discovers the downside to online auctions as an outage frustrates millions of its buyers and sellers. This sort of thing happens in the Web world and has hit AOL, E*TRADE and others. When it does the fact that it makes headline news exemplifies to me just how important the Internet has become to commerce. Bullishness in bearish news.
  • StarMedia (NASDAQ:STRM), the Latin American Web portal, launches a Puerto Rican version of its site with the claim to make it the ‘Internet capital of the Caribbean.’ That may be difficult to do from Puerto Rico since the Caribbean is a very diverse set of islands, cultures and histories with Spanish, French, Portuguese, English, African and Dutch descendents inhabiting the many isles. However, I think StarMedia has a lead on rivals by capitalizing first.

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