React first, and think later. That's often been the creed of investing in the Internet sector. With the market all of a sudden paying attention to higher interest rates, investors were fleeing Internet stocks with roughly the same gusto as they were buying them yesterday.
TheStreet.com Internet Sector
index was down 25.72, or 2.1%, at 1192.63 in recent trading, already rebounding from a low of 1165.02. Virtually every recent setback in the sector has merely provided a buying opportunity, and that was likely to limit any panic selling among Net stocks.
was up 15, or 3%, at 490 after
Schroder & Co.
upped its price target on the stock to 600 from 350. It was the second straight day that a research firm had placed a price target of 600 on Yahoo!.
First Union Securities
came up with the same price target
was up 2 5/16, or 4%, at 63 3/4 on news it was creating an all-tech radio format.
The Wall Street Journal
reported that CNet would team with broadcasting company
to provide a wide range of programming about the technology sector.
was down 16 7/8, or 5%, at 325 on news that
was pulling its business-to-business auctions from FreeMarkets and giving them to
. Commerce One was up 3 3/8, or 1.6%, at 207 on the news.
Sticking with B2B,
was down 14 1/4, or 7%, at 188 despite news that
would be using E.piphany software to track customer buying preferences. E.piphany's decline today is due to yesterday's news that the company filed for a public offering of 3 million shares. E.piphany said it planned to sell 1.1 million shares, while stockholders plan to sell 1.9 million shares.
And on a day when much of the sector was reeling because of interest-rate concerns, online brokerages were outperforming.
analyst Richard Repetto put out a note that online brokers were poised to move up in the short term due to strong trading volumes and the potential for positive earnings surprises.
Repetto noted that
announcement last week of above-consensus earnings expectations for the current quarter were positive and added that January was historically a strong month. He said that in January 1999,
experienced their strongest monthly performances of the year with returns of 150% and 96%, respectively.
In recent trading, Schwab was down 5/16, or 0.8%, at 36 11/16. E*Trade was up 15/16, or 3.3%, at 29 and Ameritrade was up 5/16, or 1.3%, at 23 7/8.
that there are longer-term concerns regarding how much online brokerages were spending on marketing to attract customers, along with heightened competition with more full-service brokers. But he said that short term, the strong volumes should be enough to give the sector a lift.
was up 6 3/16, or 5.3%, at 121 15/16 after Lehman Brothers analyst Michael Stanek wrote that recent weakness in the stock represented a "unique buying opportunity." He noted that recent weakness on concerns that Yahoo! would replace RealNetworks on its
network made little sense. He added that no single customer accounts for more than 5% of the company's revenue other than
, which accounts for 8%.