Net Stocks Stage a Mild Retreat as CNet Slides

Net stocks ended a momentous week on a slightly blue note as a high-profile IPO took a big hit and several bellwether stocks sold off mildly.

The day after it burst through the 5000 barrier, the Nasdaq Composite Index closed Friday up 1.78 at 5049. TheStreet.com Internet Sector index, meanwhile, slipped 13, or 1%, to close at 1320.

Net/Tech Indices INDEX CHANGE % VALUE TSC Internet Sector 12.91 -0.97% 1320.31 TSC E-Commerce 0.45 +0.42% 108.13 TSC E-Finance 4.15 +5.18% 84.21 Nasdaq 1.76 +0.03% 5048.62

Net bellwether Amazon.com (AMZN) closed down 1 15/16, or 3%, at 66 7/8, while Yahoo! (YHOO) closed down 5 3/16, or 3%, at 178 1/16 and AOL (AOL) closed down 2 5/16, or 4%, at 59 1/16.

The big news of the day was CNet's (CNET) announcement that Halsey Minor would step down and Vice Chairman Shelby Bonnie would be named CEO, with Minor continuing as chairman. CNet closed down 1 1/8, or 2%, at 67 3/4 after hitting an intraday low of 63 1/2.

HomeGrocer.com (HOMG), the Internet grocery service that braved the IPO waters Friday with backing by Morgan Stanley Dean Witter despite ill will toward e-commerce stocks, had a moderate debut, closing up 2 1/8, or 18%, at 14 1/8, after an intraday high of 16 1/4, or 35% above its 12 offer price. Competitors Peapod (PPOD) and Webvan (WBVN), which have struggled since their IPOs, slipped fractionally, closing at 8 3/8 and 11 13/16, respectively.

A hot IPO took a heavy hit Friday. Crayfish (CRFH), the Japanese email service that soared more than 400% on its Nasdaq debut on Wednesday, received a slew of sell-orders on the Tokyo Stock Exchange's new tech-heavy Mothers board, where it was listed Friday. U.S. investors responded by driving the stock down 46 1/16, or 35%, to close at 85 15/16. (TheStreet.com covered the deal last week.) "The deal was completely overhyped in the U.S., and Japan was not as enthusiastic," explains Vinnie Slavin, a sales trader for Cantor Fitzgerald who tracks IPOs. "Japanese investors were trading for a flip. If people in Japan don't believe in what it was priced at, then why should they believe in it here?" Slavin doesn't have holdings in Crayfish.

A handful of companies benefited from coverage and upgrades. Dell (DELL), which PaineWebber upgraded to buy from attractive, and set a 12-month price target of 78, closed up 13/16, or 2%, at 51 1/4 after reaching an intraday high of 54 1/32.

Exodus (EXDS) reached an intraday high of 175, and closed up 6, or 4%, at 164 9/16 after SG Cowen started coverage with a buy rating. Nextlink Communications (NXLK) shot up 14 15/16, or 14%, to close at 123 5/16, after Donaldson Lufkin & Jenrette raised its rating to top pick from buy.

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