presented a study of 207 Internet companies and indicated that at least 51 would burn through their cash within the next 12 months. Many stocks mentioned in the article tumbled on the report, though some analysts
questioned the methodology used in the article. The fall in these stocks was reflected in the deep decline of
The Street.com Internet Sector
index, which fell 87.78, or 6.9%, to 1184.83, and the
, which tumbled 188.13, or 3.9%, to 4610. Analysts say that the publication extrapolated on fourth-quarter numbers that may not be applicable today. And many of the companies also began coming out and disputing the article.
Some of the big losers were the companies listed as running out of cash within the next few months. Among the big decliners were
, which closed down 1 1/8, or 17%, at 5 5/8. CDnow said the article ignored a recent investment that will provide it with cash to survive for at least six months.
said the company will run out of money this month.
tumbled 3 1/8, or 14%, at 19 3/4;
ended down 1 9/16, or 13%, at 10 5/16;
Pilot Network Services
fell 7, or 14%, to 42 7/8;
closed off 7/16, or 12%, at 3 1/8;
dropped 37 5/8, or 17%, at 183;
was tripped down 4 7/8, or 12%, to 36 1/14;
slipped 1 5/16, or 16%, at 7 1/16; and
fell 12 9/16, or 15%, at 70 1/16.
closed down 22 1/2, or 15%, at 129 1/4 as the company was also singled out in the
piece, though the company's CEO was on
refuting the claim. Losses in PurchasePro came on a day when the company said that it was
to create a B2B exchange. Under the agreement, the companies will codevelop a business exchange, which will allow users to source, bid, negotiate, buy and sell their products and services over the Web. AOL was one of the few companies to post a gain, closing up 2 1/8, or 3.3%, at 66 7/8.
And a separate
article took its toll on
. It closed down 12 5/16, or 14%, at 77 11/16 following a story that indicated a number of large hotel companies were talking about starting a Web site to centralize hotel room offerings and priceline as well as other online travel agencies could be impacted by such an alliance.
But that was just one of two pieces of bad news for the sector. E-commerce software company
lost more than 60% of its value after it said it was
restating earnings results from the past two years downward. It tumbled 140, or 62%, at 86 3/4.
Other software companies fell as well, though there were no indications that any shared MicroStrategy's problems.
closed down 30 1/2, or 15%, at 170;
ended off 28 1/2, or 22%, at 103 and
finished down 36 5/16, or 16%, at 199 15/16.
Finally, shares of
a seller of digital certificate technology, closed down 8 13/16, or 21%, at 33 11/16. The company was featured in a not-so-flattering
column by our own