NOTE: Rather than focusing on the weekly performance of ‘Net stocks, this week’s Internet StockTracker focuses on the year-to-date performances of nearly 400 Internet stocks across 13 Internet sectors. To have Internet StockTracker delivered to you as a free weekly e-mail text newsletter, clickhere.
We all know that Internet stocks suffered a meltdown this spring after several months of torrid gains. But even with that knowledge, the numbers below are hard to comprehend.
For starters, five of our 13 sectors lost more than 50% of their value this year through June. Let me emphasize: I’m not talking about stocks dropping 50% or more from their peak prices in early March. No, the dismal figures you see in this week’s StockTracker take into account the big run-up in ‘Net stocks that lasted for most of Q1.
Out of 13 sectors, only two — Wireless Products/Services and Security — are up through Q2. And we may have only the hackers to thank for the latter, since shares in several security vendors climbed after two separate waves of hacker attacks on Internet properties and e-mail networks.
On the other end of the list, E-tailers on average have lost nearly two-thirds of their value this year, with Content/Communities close behind. What can we expect from each sector in the second half? Read on…
ONE MORE NOTE: Many of the stocks listed below have no percentage figures for YTD. That’s because they didn’t go public until this year, and thus could not be included in the YTD sector averages. But as you can see from the 3-month averages of some of these stocks, their inclusion wouldn’t brighten the picture a whole lot.
Market Cap figure is in millions of dollars unless otherwise noted.
PERFORMANCE BY SECTOR
Ave. YTD
% Change
Wireless Products/Services +22.5%
Security +13.6%
Speed/Bandwidth -9.9%
Consultants/Designers -29.8%
Performance Software -30.4%
Internet Services -38.5%
ISPs/Access Providers -41.6%
E-commerce Enablers -48.6%
Search/Portals -50.1%
Financial Services -54.4%
Advertising/Marketing -54.7%
Content/Communities -62.1%
E-tailers -64.9%
TOP 10 GAINERS YTD % Gain Category
AETH Aether Systems 186.2% Wireless Products/Services
GENI GenesisIntermedia 181.5% Consultants/Designers
JNPR Juniper Networks 161.7% Speed/Bandwidth
DLK Datalink.net 141.4% Wireless Products/Services
TIBX Tibco Software 114.2% Performance Software
CHKP Check Point Software 113.1% Security
TERN Terayon 108.4% Speed/Bandwidth
WGRD WatchGuard 85.0% Security
IDTC IDT 83.2% ISPs/Access Providers
BRCM Broadcom 63.8% Speed/Bandwidth
TOP 10 LOSERS YTD % Loss Category
TCTY Talk City -93.9% Content/Communities
INSW InsWeb -91.5% E-tailers
ESTM E-Stamp -91.4% E-tailers
PLRX PlanetRx.com -89.5% E-tailers
ROWE Rowecom -88.9% E-Commerce Enablers
FSHP FreeShop.com -87.4% Advertising/Marketing
PFSW PFSweb -87.3% E-Commerce Enablers
PASA quepasa.com -87.0% Content/Communities
EGRT Egreetings -86.2% Internet Services
BGST BigStar -86.0% E-tailers
*****************************************************************
WIRELESS PRODUCTS/SERVICES
6/30 YTD 3-mo. Market
Comp
any $Close %Change %Change Cap. $
AETH Aether Systems 205.00 186.2% 12.9% 7.8B
DLK Datalink.net 13.13 141.4% -58.8% 104.2
INSP Infospace 55.25 3.3% -24.0% 12.7B
GWRX Geoworks 15.75 -6.0% 112.7% 293.2
PHCM Phone.com 65.13 -43.8% -60.1% 5.1B
PUMA Puma Tech. 26.81 -58.9% -47.0% 1.1B
MCOM Metricom 27.88 -64.5% -39.9% 870.9
IWAV interWAVE 14.00 N/A -53.5% 651.9
PALM Palm 33.38 N/A -25.6% 18.7B
PRTH Parthus Tech. 28.50 N/A N/A 14.7B
SVNX 724 Solutions 43.88 N/A -64.8% 1.6B
HAND Handspring 27.00 N/A N/A 3.4B
GOAM GoAmerica 15.44 N/A N/A 728.8
IIIM i3 Mobile 18.38 N/A N/A 522.6
---------------------------------------------------------
Wireless Ave. 22.5%
Internet StockTracker’s newest sector features the top-performing stock among all ‘Net tickers, wireless information and transaction services provider Aether Systems, which has nearly tripled in price since Dec. 31. Despite being dragged down by the steep tech market decline, this is the hottest of all sectors among
‘Net investors and should remain so for the rest of the year. Lots of new blood (half of the companies here went public this year) will keep interest and enthusiasm high.
SEARCH/PORTALS
6/30 YTD 3-mo. Market
Company $Close %Change %Change Cap. $
LOOK LookSmart 18.50 -30.2% -58.1% 1.7B
LCOS Lycos 54.00 -30.9% -16.2% 6.0B
AOL America Online 52.88 -31.3% -18.7% 121.5B
YHOO Yahoo! 123.88 -41.7% -26.9% 67.3B
CHINA Chinadotcom 20.44 -47.0% -48.8% 1.7B
GO Go.com 11.92 -48.9% -39.6% 1.9B
STRM StarMedia 18.88 -52.0% -37.6% 1.2B
BOUT About.com 31.50 -64.2% -61.6% 558.3
GOTO GoTo.com 15.31 -73.4% -65.8% 751.1
ASKJ Ask Jeeves 18.06 -83.7% -72.2% 643.5
SINA SINA.com 25.63 N/A N/A 1.0B
---------------------------------------------------------
Search/Portals Ave. -50.1%
A sector given to wild price swings from week to week, Search/Portals will look markedly different by year’s end. Lycos will disappear after its acquisition by Spain’s Terra Networks, AOL may not even be classified as an Internet company once its merger with entertainment industry giant Time Warner is complete, and Ask Jeeves is (rightfully, as I’ve been saying for some time) doomed.
CONTENT/COMMUNITIES
6/30 YTD 3-mo. Market
Company $Close %Change %Change Cap. $
HOOV Hoover's 6.75 -21.4% -38.6% 87.7
MLTX Multex.com 25.19 -31.8% -16.7% 763.1
INFO Infonautics 4.38 -36.3% -48.5% 53.3
QKKA Quokka Sports 8.03 -37.7% -29.8% 357.6
GNET Go2Net 50.31 -41.1% -39.3% 1.6B
ONES OneSource 7.50 -43.1% -13.0% 86.9
MKTW MarketWatch.com 18.81 -47.5% -45.3% 265.6
CBDR CareerBuilder 3.31 -47.6% -17.2% 78.9
LAUN Launch Media 9.25 -50.2% -40.8% 125.0
KNOT Knot 3.81 -54.0% -45.5% 55.6
VERT VerticalNet 36.94 -54.1% -51.1% 3.0B
EDGR EDGAR Online 3.31 -54.2% -65.6% 41.3
CNET CNET Networks 24.56 -55.9% -50.9% 2.1B
ZDZ ZDNet 9.00 -56.3% -61.2% 677.6
MPPP MP3.com 13.56 -56.4% -32.8% 923.0
IVIL iVillage 8.44 -57.6% -49.1% 250.4
HCEN HealthCentral.co
m 3.00 -58.2% -44.8% 68.1
HOMS Homestore.com 29.19 -60.0% -35.1% 2.4B
INTM internet.com 19.69 -61.6% -52.6% 493.9
SPLN SportsLine.com 17.06 -65.3% -42.6% 449.9
STAD Student Advantage 7.31 -66.4% -37.8% 261.5
TPN TownPagesNet 1.69 -66.4% -73.0% 16.2
VDAT Visual Data 3.63 -67.9% -56.1% 30.7
TSCM TheStreet.com 5.81 -69.1% -41.1% 147.5
EWBX EarthWeb 14.00 -71.7% -44.7% 147.5
NETR NetRadio 2.17 -73.2% -50.4% 21.7
SALN Salon.com 1.28 -73.9% -72.3% 16.0
ILIF ilife.com 1.13 -74.5% -67.3% 15.7
NTVN Netivation.Com 1.38 -75.6% -75.6% 15.0
TURF iTurf 2.88 -76.5% -72.5% 60.7
LOIS Loislaw.com 8.56 -77.7% -56.9% 179.7
TGLO theglobe.com 1.72 -79.1% -75.0% 52.4
NBCI NBC Internet 12.50 -83.5% -70.9% 761.2
KOOP drkoop.com 1.84 -84.2% -70.5% 64.0
WOMN Women.com 2.06 -85.3% -77.2% 96.4
PASA quepasa.com 1.63 -87.0% -69.8% 30.6
TCTY Talk City 1.56 -93.9% -74.0% 39.0
ARTD Artistdirect 3.13 N/A -55.0% 115.5
IASIA Asiacontent.com 3.81 N/A N/A 130.9
DTHK DigitalThink 35.88 N/A -14.1% 1.2B
HGAT HealthGate 1.63 N/A -72.9% 29.0
HSTM HealthStream 5.50 N/A N/A 107.2
IMPV ImproveNet 2.50 N/A -64.3% 41.8
SNOW Snowball.com 4.88 N/A -52.7% 183.2
SWBD Switchboard 10.00 N/A -67.7% 246.4
--------------------------------------------------------
Content/Comm. Ave. -62.1%
If the Content/Communities and E-tailer sectors were dinosaurs, then the spring stocks plunge was the natural
disaster that ensured their doom. Not a gainer to be found out of 37 stocks that were trading at the beginning
of the year. The only survivors here will be those companies that target niche, rather than general,
audiences and evolve their revenue models beyond online advertising. In other words, they have to better monetize their traffic. Most will fail to do so.
E-TAILERS
6/30 YTD 3-mo. Market
Company $Close %Change %Change Cap. $
CTIX Cheap Tickets 12.00 -10.7% -12.3% 290.4
EBAY eBay 54.31 -11.6% -47.6% 14.3B
PCLN priceline.com 37.98 -18.3% -53.2% 6.5B
ALOY Alloy Online 11.25 -27.2% -32.8% 198.3
EBKR Ebookers.com 8.75 -48.5% -64.3% 149.0
COOL Cyberian Outpost 4.81 -50.7% -42.1% 137.0
AMZN Amazon.com 36.31 -51.4% -45.4% 12.8B
FASH Fashionmall.com 2.09 -51.9% -39.1% 15.7
AMEN Crosswalk.com 2.38 -52.8% -39.7% 18.3
BNBN Barnes&Noble.com 6.53 -53.1% -29.9% 952.5
EFTD FTD.COM 2.38 -53.9% -19.2% 112.3
EXPE Expedia 14.81 -56.9% -38.9% 656.7
TMCS Ticketmaster 15.94 -57.8% -36.4% 1.4B
PPOD Peapod 3.03 -64.2% -6.7% 54.4
HITS Musicmaker.com 1.94 -66.4% -50.0% 64.2
CDNW CDnow 3.09 -68.1% -18.9% 101.5
ADBL Audible 4.16 -71.8% -58.4% 113.8
GDEN Garden.com 2.38 -72.2% -75.2% 41.8
FATB Fatbrain.com 6.59 -73.2% -44.5% 85.8
AHWY audiohighway.com 2.25 -73.2% -65.4% 14.4
ASFD Ashford.com 2.88 -73.4% -41.8% 129.3
SKDS SmarterKids.com 1.84 -74.1% -54.6% 37.7
ETYS eToys 6.34 -75.4% -33.2% 771.2
TIXX Tickets.com 3.41 -75.8% -60.5% 198.4
EMUS EMusic.com 2.38 -76.4% -59.1% 101.8
VUSA Value America 1.09 -78.0% -68.7% 49.7
BFLY Bluefly 2.19 -78.4% -76.7%
10.8
DSCM Drugstore.com 7.53 -78.8% -40.9% 392.9
EGGS Egghead.com 2.94 -81.5% -57.3% 118.4
BYND Beyond.com 1.34 -82.5% -72.1% 51.1
VSHP VitaminShoppe.com 1.31 -85.3% -65.0% 26.7
SQST SciQuest.com 11.44 -85.3% -58.0% 324.6
BGST BigStar 1.06 -86.0% -70.2% 10.8
PLRX PlanetRx.com 1.50 -89.5% -78.9% 77.7
ESTM E-Stamp 1.88 -91.4% -74.4% 73.4
INSW InsWeb 2.13 -91.5% -80.0% 74.7
BUYX BUY.COM 5.03 N/A -49.1% 662.2
HOMG HomeGrocer.com 6.03 N/A -39.7% 773.4
ROOM Hotel Network 29.75 N/A 65.3% 1.6B
LMIN Lastminute.com 15.06 N/A -19.7% 452.9
IPET Pets.com 2.25 N/A -51.4% 66.6
VSTY Varsity Group 1.44 N/A -58.9% 22.6
-------------------------------------------------------
E-tailers Ave. -64.9%
What can you say about this sorry group? Of all these companies, I believe only eBay is a sure bet to thrive.
I give a fighting chance to priceline.com and eToys, and will reserve judgment on Ticketmaster Online-CitySearch, Cheap Tickets and Hotel Reservations Network, which have fewer inventory costs. You can say goodbye to just about everyone else, including Amazon.com.
FINANCIAL SERVICES
6/30 YTD 3-mo. Market
Company $Close %Change %Change Cap. $
ECMV E Com Ventures 2.56 -22.6% -49.4% 25.1
NTBK Net.B@nk 12.44 -31.5% 1.5% 372.9
EGRP E*TRADE 16.50 -35.7% -42.7% 4.8B
WITC Wit Soundview 10.73 -35.7% -35.9% 966.9
AMTD Ameritrade 11.63 -45.4% -47.0% 2.0B
DIR DLJdirect 7.13 -46.5% -43.0% 731.4
LINE onlinetrading.com 5.13 -52.0% -24.1% 58.8
CMGI CMGI 45.81 -66.3% -58.2% 13.5B
NXCD NextCard 8.50 -70.0% -46.0% 448.9
EELN E-LOAN 4.75 -70.2% -40.9% 200.1
MDCM Mortgage.com 1.50 -73.7% -44.8% 66.4
ICGE Internet Capital 37.02 -77.8% -60.4% 9.8B
WEBS Web Street 2.50 -79.4% -70.8% 64.3
TREE LendingTree 7.50 N/A -48.1% 135.2
--------------------------------------------------------
Financial Services Ave. -54.4%
There’s a lot of pressure on this sector from bricks ‘n mortar financial services providers such as Merrill Lynch and Fidelity. The fevered grab for customers has caused intense pricing pressure for online brokers, while loan processors such as LendingTree and credit card dispensers such as NextCard are in businesses with low barriers to entry. Lots of consolidation in the future for this group.
E-COMMERCE ENABLERS
6/30 YTD 3-mo. Market
Company $Close %Change %Change Cap. $
ARTG Art Technology 100.94 60.5% 60.2% 6.7B
ARBA Ariba 98.06 12.6% -10.9% 23.1B
QSFT Quest Software 55.38 10.6% -5.7% 4.7B
ITWO i2 Technologies 104.27 8.9% -19.2% 16.6B
EPAY Bottomline Tech. 34.19 -3.3% -7.8% 371.5
DGIN Digital Insight 34.00 -4.8% -41.4% 790.7
BVSN BroadVision 50.81 -8.7% -0.4% 12.7B
ASWX Active Software 77.69 -14.0% 9.5% 2.0B
APNT AppNet 36.00 -16.2% -22.0% 1.2B
PRSW Persistence 18.13 -17.9% -8.5% 353.6
CYSV Cysive 23.88 -32.5% -40.9% 661.8
AGIL Agile Software 70.69 -33.7% -5.9% 3.3B
BBSW Broadbase 30.63 -44.5% -24.2% 1.4B
CYCH CyberCash 4.75 -47.7% -60.4% 117.8
GSPT Global Sports 6.44 -47.8% -66.1% 139.7
E
PNY E.piphany 107.19 -51.1% -27.8% 4.7B
CMRC Commerce One 45.38 -53.0% -47.6% 7.1B
RETK Retek 32.00 -56.7% -31.7% 1.5B
ABTL Autobytel.com 6.16 -58.7% -21.8% 124.4
ORCC Online Resources 6.44 -60.6% -62.1% 76.4
NETP Net Perceptions 15.88 -61.5% -57.7% 423.1
HCOM HomeCom 1.16 -63.1% -66.4% 9.5
LQID Liquid Audio 9.47 -63.3% -40.8% 209.0
TANN Tanning Tech. 19.25 -66.7% -46.9% 398.2
CLIC Calico Commerce 16.25 -68.8% -53.4% 545.5
OMKT Open Market 13.81 -68.8% -51.5% 639.1
USIT U.S. Interactive 12.94 -69.3% -56.8% 343.1
PPRO PurchasePro.com 41.00 -69.6% -54.2% 1.4B
BRNC Braun Consulting 21.13 -69.9% -29.6% 421.6
CYBS CyberSource 13.81 -72.8% -57.0% 358.2
INTW InterWorld 20.50 -75.5% -63.1% 579.3
DRIV Digital River 7.69 -76.5% -68.5% 167.9
ELCO Elcom Int. 6.88 -79.4% -55.5% 211.1
ITRA Intraware 16.06 -79.5% -61.8% 418.4
PRVW Preview Systems 13.00 -79.6% -70.8% 220.0
AWEB Autoweb.com 2.13 -80.1% -71.4% 62.5
QUOT Quotesmith.com 2.16 -80.7% -61.7% 41.5
PCOR pcOrder.com 7.75 -84.5% -66.8% 130.4
PFSW PFSweb 4.69 -87.3% -74.0% 83.8
ROWE Rowecom 4.94 -88.9% -70.0% 51.0
CORI Corillian 16.63 N/A N/A 490.9
FAIM FairMarket 7.06 N/A -71.2% 198.8
FIRE FirePond 36.00 N/A -25.5% 1.3B
IMPV ImproveNet 2.50 N/A -64.3% 41.8
NEOF Neoforma.com 7.03 N/A -64.6% 485.8
ONVI Onvia.com 8.63 N/A -60.9% 694.5
OPUS Opus360 3.69 N/A N/A 184.7
PRTS PartsBase.com 5.50 N/A -43.6% 81.4
SABA Saba Software 21.00 N/A N/A 915.3
SLTC Selectica 70.06 N/A -22.6% 2.5B
STCS Software Tech. 30.69 N/A N/A 2.1B
SNHK Sunhawk.com 16.13 N/A -7.9% 48.5
XCAR XCare.net 5.38 N/A -62.3% 87.3
BTBC b2bstores.com 2.56 N/A -74.4% 22.1
WEBM webMethods 157.19 N/A -32.7% 5.1B
---------------------------------------------------------
E-commerce Enablers Ave. -48.6%
After three straight shutouts, it’s nice to see another sector with some stocks that are up. Art Technology Group just misses the list of top 10 YTD gainers. Many of the eventual winners in this sector — ATG, i2 Technologies, Ariba — are at the top of the list. Some companies will disappear from the group, but probably not until next year, since most don’t face the cash crunch that has plagued e-tailers and content players. Look for a decent second half of 2000 from this sector, as the strong companies recover.
SECURITY
6/30 YTD 3-mo. Market
Company $Close %Change %Change Cap. $
CHKP Check Point 211.75 117.1% 24.9% 16.3B
WGRD WatchGuard 54.94 85.0% -33.2% 1.3B
ISSX ISS Group 98.73 41.4% -9.4% 4.1B
ENTU Entrust Tech. 82.75 40.6% -2.4% 4.4B
AXNT AXENT 24.81 20.4% 33.7% 714.7
LTNX Litronic 8.81 12.2% -51.0% 87.1
RSAS RSA Security 69.25 -9.0% 24.8% 2.7B
VONE V-ONE 5.00 -13.3% -3.6% 103.2
PILT Pilot Network 14.88 -36.9% -50.4% 220.5
NSSI Network-1 6.00 -43.5% -54.7% 36.9
ITRU InterTrust 20.56 -64.4% -54.2% 1.7B
-------------------------------------------------------
Security Ave. +13.6%
If more hackers used their powers for good instead of cyber-mischief, t
his group would be hurting. But as long
as danger flourishes on the ‘Net, many of the companies here will continue to do well. This sector has already
undergone some consolidation — hence the high percentage of billion-dollar caps, which should reduce turbulence. Look for strong performances in Q3 and Q4.
PERFORMANCE SOFTWARE
6/30 YTD 3-mo. Market
Company $Close %Change %Change Cap. $
TIBX Tibco Software 107.25 114.2% 22.6% 20.2B
VOCL VocalTec 23.00 39.9% -27.0% 278.1
SWCM Software.com 129.88 37.8% 1.4% 6.2B
PRSF Portal Software 63.88 26.5% 16.1% 10.3B
OTEX Open Text 21.50 21.7% -30.6% 433.9
PKSI Primus Knowledge 45.00 1.2% -43.6% 794.4
VIGN Vignette 52.03 -2.5% -12.3% 10.0B
WEBT WebTrends 38.69 -2.7% -36.3% 1.0B
CLRN Clarent Corp. 71.50 -6.3% -22.1% 2.3B
IPIX Internet Pict. 15.13 -7.0% -55.5% 893.6
IWOV Interwoven 110.00 -7.9% -3.0% 2.7B
RNWK RealNetworks 50.56 -14.4% -14.6% 7.8B
SPYG Spyglass 31.31 -15.9% -58.5% 544.9
DGV Digital Lava 5.75 -16.3% -58.6% 26.9
NTOP Net2Phone 35.69 -20.9% -35.6% 2.0B
FVCX FVC.com 7.75 -32.5% -54.4% 133.3
RWAV Rogue Wave 4.88 -37.9% -37.1% 52.7
BWEB BackWeb 22.88 -44.7% -29.6% 849.9
COBT Cobalt Networks 57.88 -45.6% 12.4% 1.6B
ALLR Allaire 36.75 -48.8% -46.5% 993.6
PASW Pacific Softworks 2.81 -49.6% -60.2% 12.7
SSSW SilverStream 57.75 -50.6% -3.0% 1.2B
NESY NEON Systems 18.75 -51.3% -38.1% 176.8
SGNT Sagent Tech. 14.25 -51.5% -56.0% 402.1
NSPK NetSpeak 9.88 -52.7% -50.0% 136.5
VIAD Viador 15.88 -61.8% -67.9% 265.3
IMAN iManage 9.94 -68.5% -41.5% 218.3
SONE S1 Corp. 23.31 -69.6% -72.5% 1.3B
GTHR GetThere.com 10.56 -73.3% -31.9% 353.1
RHAT Red Hat 27.06 -73.9% -32.8% 4.2B
LBRT Liberate Tech. 29.31 -76.8% -59.3% 2.6B
BLSW Bluestone 25.69 -77.2% -31.1% 524.2
TMNT Telemate.Net 3.19 -80.0% -74.7% 24.6
WAVO WAVO 0.75 -80.3% -83.6% 22.2
INSO Inso Corp. 5.19 -83.6% -61.2% 87.5
CTRA Centra Software 9.50 N/A -57.3% 229.3
DTEC Delano Tech. 12.13 N/A -49.3% 363.4
EMBT Embarcadero 29.38 N/A N/A 773.2
EPRS Eprise Corp. 16.44 N/A 4.4% 412.8
EXTN Extensity 34.25 N/A -34.8% 809.1
LOUD Loudeye Tech. 17.44 N/A -48.9% 641.6
MONE MatrixOne 40.63 N/A -7.1% 1.7B
OTGS OTG Software 28.56 N/A -26.3% 728.1
SQSW Sequoia Software 16.38 N/A N/A 487.2
VMDC VantageMed 1.81 N/A -54.0% 15.6
VATA Versata 40.31 N/A -32.7% 1.6B
WBSN Websense 25.13 N/A -38.0% 490.2
NTGX net.Genesis 18.06 N/A -50.3% 380.4
--------------------------------------------------------
Performance Software Ave. -30.4%
It’s tough to get a handle on this sector, since it is comprised of a hodge-podge of companies targeting vastly different customer bases. There are Linux companies, traffic analysis providers, streaming multimedia
software vendors, application tools developers…you get the idea. I like RealNetworks, Portal Software,
Net2Phone, Allaire and Tibco. After that, it’s anyone’s guess.
INTERNET SERVICES
6/30 YTD 3-mo. Market
Company $Close %Change %Change Cap. $
IBAS
iBasis 43.06 52.6% -2.1% 1.5B
CAVN Cavion Tech. 10.25 34.7% -39.7% 50.9
ITXC ITXC 35.41 7.3% -25.3% 1.4B
EXDS Exodus 46.06 5.7% -36.0% 19.0B
DIGX Digex 67.94 0.7% -41.4% 4.3B
KEYN Keynote Systems 70.56 -2.5% -28.7% 1.9B
VRSN VeriSign 176.50 -5.8% 16.1% 20.4B
INIT Interliant 23.31 -8.7% -21.6% 1.1B
NAVI NaviSite 41.81 -14.8% -40.4% 2.4B
HHNT HeadHunter.NET 10.13 -17.9% -42.1% 110.5
JPTR Jupiter Comm. 23.00 -22.5% 9.5% 355.5
SAPE Sapient 106.94 -22.7% 31.4% 6.3B
BWAY Breakaway Sol. 27.00 -24.6% -38.0% 952.6
NVDC Navidec 8.88 -24.7% -35.5% 98.1
CTCH CommTouch 32.50 -31.8% -23.9% 494.0
ACRU Accrue Software 35.50 -33.2% -16.5% 880.5
CPTH Critical Path 58.31 -37.1% -25.2% 3.6B
KANA Kana Comm. 61.88 -38.5% -28.1% 5.6B
ECRU E-Cruiter.com 4.00 -42.8% -43.9% 29.5
DRTN Data Return 29.00 -44.8% -33.9% 1.0B
LIOX Lionbridge Tech. 9.75 -45.6% -33.9% 246.1
LFMN Lifeminders 29.56 -47.9% -53.8% 699.1
CONV Convergent 8.00 -48.7% -28.5% 233.2
MDLI MedicaLogic 9.25 -55.1% -48.6% 369.4
USIX USinternetworking 20.44 -55.3% -43.4% 2.0B
HLTH Healtheon/WebMD 14.81 -59.8% -42.6% 2.7B
CLAI Claimsnet.com 3.50 -64.3% -50.4% 27.4
NETZ Netzee 5.72 -65.0% -61.9% 124.1
EGAN eGain 12.13 -67.3% -66.7% 358.9
HOTJ HotJobs.com 13.81 -67.8% -45.1% 440.1
MAIL Mail.com 5.69 -69.1% -66.8% 323.1
MRBA Marimba 13.94 -69.2% -65.7% 324.9
SRCH US SEARCH.com 2.00 -72.8% -58.4% 35.9
JFAX JFAX.COM 1.59 -75.8% -67.5% 57.5
NTWO N2H2 5.00 -78.3% -62.6% 112.3
STMP Stamps.com 7.31 -82.1% -64.3% 357.2
EFAX eFax.com 1.22 -82.8% -75.9% 16.1
EGRT Egreetings 1.38 -86.2% -76.3% 48.1
CHRD Chordiant Software 16.63 N/A -2.2% 609.8
CRFH Crayfish 7.00 N/A -82.9% 356.1
ETIN Etinuum 5.63 N/A -43.4% 101.1
FUSN Fusion Networks 2.06 N/A N/A 56.6
LPSN LivePerson 8.69 N/A N/A 255.1
RCOM Register.com 30.56 N/A -57.6% 956.0
SVVS Savvis Comm. 13.06 N/A -18.0% 1.2B
SKIL SkillSoft 14.13 N/A -49.7% 186.9
VCNT Vicinity 19.63 N/A -52.1% 551.2
WQNI WorldQuest 7.13 N/A -62.7% 45.4
IPRT iPrint.com 4.91 N/A -69.3% 146.8
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Internet Services Ave. -38.5%
Like Performance Software, this is another broadly defined sector containing multiple business models and markets. I expect the larger companies offering a variety of services to prevail in the long run, snapping up niche players such as JFAX.COM, eFax.com, iPrint.com and Egreetings.
ADVERTISING/MARKETING
6/30 YTD 3-mo. Market
Company $Close %Change %Change Cap. $
NTCR NetCreations 45.81 6.1% 14.2% 709.9
CBLT Cobalt Group 6.88 -25.3% -45.0% 118.6
MMXI Media Metrix 25.44 -27.5% -38.0% 504.7
APLN @Plan.Inc 6.56 -32.3% -21.6% 73.7
NTRT NetRatings 25.63 -45.8% 9.3% 825.7
CGLD CyberGold 9.31 -46.4% -15.3% 202.3
ENGA Engage 12.94 -56.1% -71.9% 2.2B
HPOL Harris Interactive 4.84 -62.2% -25.5% 156.4
MPLX Media
plex 19.31 -68.6% -62.9% 637.1
DCLK DoubleClick 38.13 -69.3% -60.5% 4.7B
NCNT Netcentives 18.63 -69.6% -37.9% 773.3
DIGI Digital Impact 14.13 -71.3% -55.5% 348.4
TFSM 24/7 Media 15.63 -71.7% -61.1% 412.6
MYPT MyPoints.com 18.95 -73.9% -29.1% 552.1
BFRE Be Free 9.00 -74.5% -63.8% 582.7
FSHP FreeShop.com 5.94 -87.4% -66.5% 93.0
AVEA Avenue A 8.81 N/A -69.9% 512.1
LNTY L90 10.50 N/A -45.1% 230.8
PRME Prime Response 6.88 N/A -60.4% 142.0
VCLK ValueClick 10.25 N/A N/A 286.6
CSAV coolsavings.com 6.06 N/A N/A 234.5
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Advertising/Marketing Ave. -54.7%
This is the land of the small-cappers, and as such, will look markedly different as consolidation and evaporation take hold. There simply are too many premium/incentive consumer Web sites here (FreeShop.com, Netcentives, MyPoints.com, etc.) for more than two or three to survive. Media Metrix recently announced a merger with Jupiter Communications, while @plan.inc is looking for a buyer.
CONSULTANTS/DESIGNERS
6/30 YTD 3-mo. Market
Company $Close %Change %Change Cap. $
GENI GenesisIntermedia 16.06 181.5% -9.5% 87.0
PRFT Perficient 14.00 11.9% -31.7% 85.0
PXCM Proxicom 47.88 -21.5% 8.3% 2.7B
VIAN Viant 29.63 -39.0% -7.8% 1.4B
SCNT Scient 44.13 -48.0% -52.2% 3.1B
MMPT Modem Media 12.44 -64.0% -63.3% 302.7
ACOM AGENCY.COM 17.81 -64.4% -22.6% 628.7
MRCH marchFirst 18.25 -65.3% -48.0% 2.7B
RAZF Razorfish 16.06 -65.6% -46.5% 1.5B
IIXL iXL Enterprises 14.50 -73.4% -54.7% 1.1B
LUMT Luminant 8.94 -80.0% -46.6% 235.8
DTAS Digitas 16.31 N/A -32.2% 936.8
INFT Inforte 36.00 N/A -25.0% 444.3
IISX Integrated Info. 8.19 N/A -64.8% 167.5
LNTE Lante 20.44 N/A -31.9% 805.3
OGNC Organic 9.75 N/A -57.6% 855.7
PECS PEC Solutions 8.13 N/A N/A 180.5
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Consultants/Designers Ave. -29.8%
Throw out GenesisIntermedia.com, and this sector is down 51% for the year. The Internet consulting market is huge and projected to be get bigger, hence the large percentage of billion-dollar cappers and new entrants here. This is another sector capable of severe price swings. It’s too early to pick the winners in the consulting arena, which makes me leery about making predictions (or bets).
SPEED/BANDWIDTH
6/30 YTD 3-mo. Market
Company $Close %Change %Change Cap. $
JNPR Juniper Networks 145.56 161.7% 9.0% 45.7B
TERN Terayon 64.25 108.4% -39.3% 4.0B
BRCM Broadcom 218.94 63.8% 3.8% 47.1B
INKT Inktomi 118.25 35.7% -33.7% 13.1B
CSCO Cisco Systems 63.56 20.9% -13.7% 446.5B
ATON Alteon WebSystems 100.06 16.2% 18.2% 4.1B
SCMR Sycamore Networks 110.38 9.5% -14.8% 27.0B
TUTS Tut Systems 57.38 9.0% 5.8% 867.9
RAMP Ramp Networks 11.88 -20.7% -39.7% 252.6
RDWR Radware 26.50 -37.4% -33.1% 410.0
ATHM At Home 20.75 -50.7% -37.5% 8.2B
INAP InterNAP 41.52 -51.1% -23.1% 5.6B
FFIV F5 Networks 54.56 -51.2% -23.2%
1.2B
CFLO CacheFlow 61.56 -52.0% -41.6% 2.2B
COVD Covad Comm. 16.13 -56.0% -63.4% 2.4B
PKTR Packeteer 29.13 -58.2% -15.9% 789.5
CAIS CAIS Internet 14.06 -59.6% -43.3% 323.5
WGAT WorldGate 17.75 -62.0% -37.6% 382.5
HSAC High Speed Access 6.56 -62.1% -50.9% 365.3
AKAM Akamai Tech. 118.75 -63.1% -25.8% 12.4B
SONS Sonus Networks 157.88 N/A N/A 9.5B
IBEM iBEAM 18.00 N/A N/A 1.9B
-----------------------------------------------------------
Speed/Bandwidth Ave. -9.9%
The infrastructure players have fared well this year relative to most other sectors, and that’s because the market recognizes the eternal need for more bandwidth and better network efficiency. Most of these companies provide that, and most have amassed some heft. Winners will include Inktomi, Broadcom and a plucky underdog named Cisco Systems. A second tier of winners should include F5 Networks and Ramp Networks. Among the large-cap entrants, Akamai and Juniper Networks are the most overvalued.
ISPs/ACCESS PROVIDERS
6/30 YTD 3-mo. Market
Company $Close %Change %Change Cap. $
IDTC IDT 33.94 83.2% -8.9% 1.3B
VRIO Verio 55.48 22.4% 24.3% 4.4B
VOYN Voyager.net 8.00 -11.3% -39.9% 253.2
PSIX PSINet 25.13 -17.1% -26.2% 4.0B
BIZZ Biznessonline.com 5.25 -23.6% -28.8% 47.5
ONEM OneMain.com 11.25 -23.6% -8.6% 282.1
DSLN DSL.net 10.31 -27.2% -43.7% 672.7
TRRA Terra Networks 36.47 -32.1% -52.8% 10.0B
IIJI Internet/Japan 59.25 -37.9% -19.1% 2.7B
ELNK Earthlink 15.44 -41.5% -20.1% 1.7B
DDDC Deltathree.com 14.56 -42.4% -25.8% 418.2
FREE Freeserve 50.13 -44.5% -30.7% 5.8B
ATHY AppliedTheory 15.00 -44.9% -34.4% 350.4
ISLD Digital Island 48.63 -47.9% -19.0% 3.3B
ZIPL Ziplink 6.00 -51.1% -57.3% 77.6
GEEK Internet America 5.06 -56.3% -41.3% 49.1
RMII RMI.Net 3.06 -62.5% -61.7% 63.9
IGLD Internet Gold 8.19 -62.5% -53.9% 150.9
PCNTF Pacific Internet 15.25 -66.9% -59.8% 192.8
IZAP ZapME! 2.75 -67.5% -64.5% 121.0
JWEB Juno Online 10.75 -69.2% -29.5% 416.1
LOAX Log On America 5.44 -72.6% -53.5% 45.3
KOREA Korea Thrunet 14.00 -79.0% -64.9% 922.9
NZRO NetZero 5.22 -80.3% -67.1% 547.1
PNVN PNV 1.38 -82.9% -75.0% 21.9
FSST FASTNET 3.75 N/A -70.6% 56.2
GIGM GigaMedia 12.13 N/A -79.1% 592.1
HANA Hanaro Telecom 7.06 N/A -52.9% 1.9B
NPLI Netpliance 9.13 N/A -25.5% 550.8
QSCG QS Comm. AG 18.63 N/A N/A 949.4
TLCT Telocity Delaware 4.56 N/A -64.7% 390.0
VNWI VIA NET.WORKS 15.44 N/A -49.3% 920.7
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ISP/Access Provider Ave. -41.6%
While this sector also is an infrastructure group, there are a number of weak-sister business models (free access) and smaller ISPs that will not survive. Look for Digital Island, Verio and Terra Networks to show strong in the year’s second half. NetZero and PNV are not long for this world, and OneMain.com is being bought by Earthlink.
