Sell-Off Continues in Tech, Internet Shares

Blue chips continued to steal the limelight from Internet and technology
stocks Thursday as investors continued dumping the latter two groups amid
continued warnings the sectors are overvalued.

At 12:30 p.m. Eastern, internet.com’s Internet Stock Index had dove 38.07,
or 3.85 percent, to 950.88 and the Nasdaq Composite had plunged 144.98 to
4,499.69. In contrast, the Dow Jones industrial average had gained 55.84 to
11,074.56.

Needless to say, some of the heaviest Internet losers were many of the
stocks that have posted the biggest run-ups over the past several weeks.
They included Ariba Inc. , was down
5-1/8 to 221,
Cisco Systems Inc. (CSCO), was off 2-7/8 to 73-3/16, Exodus
Communications Inc.
(EXDS), losing 8-1/8 to 143-15/16, Go2Net Inc.
(GNET)
had lost 6-5/8 to 82-1/8 and Inktomi
Corp.
(INKT)
had shed 8 to 174.

Infospace.com Inc. (INSP)
had plunged 15-9/16 to 129-1/2, Juniper Networks Inc. (JNPR)
was off 18-1/16 to 269-15/16, Network Solutions Inc. (NSOL)
was off 15-1/2 to 165-1/2 and merger partner VerticalNet (VERT)
was off 11-9/16 to 148-7/16 and Verisign
Inc.
(VRSN)
had given up 14-1/4 to 155.

Another heavy loser Cabletron Systems Inc. (CS) had
plunged 18-5/8 to 31-1/4. The networking equipment maker was downgraded from
“market outperform” to “market perform” by Goldman Sachs.

Healtheon/WebMD Corp. (HLTH)
was down 3-9/16 to 27-1/8 on word that several large U.S. insurers plan to
team on a new site that would process insurance claims electronically.

One of the day’s few success stories was Primedia Inc. (PRM),
up 5-5/16 to 32-7/16. Internet incubator CMGI
Inc.
(CMGI)
took a 5 percent stake in the firm and announced plans for the two to
develop new Internet-based ventures.


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