Net Stocks Recover Losses from Hacking Wave

Internet issues recovered slightly from midday levels on Wednesday. News
that successful hacking attempts were spreading to some of the Web’s most
popular sites had a major impact on the day’s trading.


internet.com’s Internet Stock Index closed off 2.00, or 0.22 percent, to
922.33, the Nasdaq Composite fell 63.56 to 4363.94 and the Dow Jones
industrial average plunged 258.44 to 10699.16.


SoftNet Systems (SOFN)
lost 2-5/16 to 42-3/16. CMGI (CMGI)
and Compaq Computer (CPQ)
will invest $100 million in an initiative with SOFN to bring broadband and
mobile Internet services to global business travelers.

CMGI affiliated, Vicinity Corp. (VCNT)
priced 7 million shares at $17 per share with lead underwriter J.P. Morgan &
Co. Shares surged 31-3/4, or 187 percent, to 48-3/4.

CyberGold Inc. (CGLD)
slipped 13/16 to 19-5/8. CIBC World Markets upgraded the direct marketing
and advertising solutions company from “buy” to “strong buy.”

eBay Inc. (EBAY)
was off 5-3/4 to 164, Yahoo! Inc. (YHOO)
fell 10-13/16 to 362-5/16 and Amazon.com
(AMZN)
dropped 2-7/8 to 80-1/4.


The FBI said in a news conference Wednesday morning it is investigating the
rash of “denial of service” attacks. Such attacks involve using automated
tools to flood Web sites with traffic until they are overwhelmed with
requests and will no longer function.


The attacks were good news for Internet security specialists whose stocks
moved higher in Wednesday’s trading. Those benefiting included Keynote
Systems (KEYN), up 4-15/16 to 118-1/2, ISS Group (ISSX), gainede 7-7/8 to 81-3/4 and Axent Technology (AXNT), up 5 to 28-1/4.


Cisco Systems Inc. (CSCO)
added 3 to 128-13/16. The company Tuesday reported a fiscal second-quarter
operating profit of 25 cents a share, beating analysts’ estimates by a
penny. The company also announced a 2-for-1 stock split.


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