It’s been a shaky week for Internet stocks, with more sectors losing
ground than gaining, according to numbers from internet.com’s Internet
StockTracker e-mail newsletter due out Friday.
However, despite nagging fears of interest rate hikes and bursting
bubbles, Internet stocks as a whole have been up so far this year, with
internet.com’s Internet Stock Index of 50 companies up 12% since Dec. 31
and nearly 19% in February.
Cavion, a provider of B2B Internet services for credit unions (there’s a
niche!), surged on strong Q4 earnings announced two weeks ago, while
WatchGuard benefited (along with a number of other security companies)
from the hacker attacks on major Web sites. Terra is seen as the
strongest access provider in the Spanish market.
A number of companies began 2000 with a bang, only to see their stock
prices quickly roll downhill. Venture fund company Internet Capital Group (ICGE)
is down 30% since Dec. 31, and 40% since Jan. 3, when it spiked $30 to
close at $200 per share. (I’ll take a closer look at ICGE in Friday’s
StockTracker Daily after the company issues its Q4 report.)
Natural-language online search service Ask Jeeves (ASKJ),
which enjoyed a love affair with investors last fall, gained 22% to
close at $138 per share in its first day of trading this year. ASKJ
closed Wednesday at 63 5/16, leaving the stock down 44% for the year and
54% since Jan. 3. Even at its current price, Ask Jeeves is valued at 76x
last year’s revenues.
Some of the high-flying e-commerce software stocks have come crashing
down in 2000. Computer equipment B2B player pcOrder.com (PCOR)
was down 46% for the year through Wednesday, while Rowe.com (ROWE),
which sells software that allows libraries to order books and
periodicals, has dropped 51%.
Expect several more stocks from this overvalued B2B e-commerce sector to
come down in the next few months.
Subscribe to Internet StockTracker, a weekly e-mail newsletter from
internet.com Corp. Every Friday internet.com will deliver to your e-mail
in-box the latest performance data on individual Internet companies and
their competitors. Internet StockTracker will deliver to you all the
statistics you need to assess the week’s activity.
Subscribe today at e-newsletters