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Net Bargains Accompany Nasdaq Selloff

Highfliers like CMGI, eBay and Yahoo! were all lower in afternoon action.

There are now some bargains in the Internet sector -- that is, if you view today's setback as a one-day affair and not the start of something larger. Internet Sector

index, or DOT, was off 53.18, or 4.4%, at 1165.29 in recent trading. The DOT traded as low as 1145.51, finding support ahead of yesterday's low of 1138.43.

Losses have come as the market awakens to the fact that

interest rates on the 30-year bond are at levels not seen since September 1997. And contrary to popular belief of late, stocks can indeed go down. The Net sector was likely seeing heavy selling from traders who were waiting for the start of the new year to take profits so they could play with that money for another year before paying taxes on it.

Among stocks on the decline were a number of highfliers that have been big upside movers in recent sessions.



, which gained almost 50 points yesterday, was down 21 1/4, or 7%, at 305 in recent trading.


(EBAY) - Get eBay Inc. Report

, which gained more than 16 points yesterday, was off 12 1/2, or 9%, at 128 3/4 today. And



, which was one of the only strong performers today after yet another firm placed a price target of 600 on the stock, was recently up 6, or 1%, at 481 after trading as high as 500 1/8 early on.

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were reeling along with the rest of the sector today, but contributing to their loss specifically was a downgrade from

A.G. Edwards

to maintain from accumulate. DoubleClick was lately off 18 1/4, or 7%, at 249. It was trading at 139 1/8 as recently as Nov. 12.

But even with the losses, there were a couple of standouts in the sector.


was up 2 1/4, or 4%, at 53 1/2 following a positive note from

Donaldson Lufkin & Jenrette

analyst Jamie Kiggen. Kiggen raised his revenue estimates for the December quarter to $167 million from $155 million while upping his gross-margin estimate to 13% from 12.3%. He wrote that increased revenue would come from better-than-expected demand for airline tickets. DLJ has done underwriting for priceline.

Liquid Audio


was up 4 3/4, or 18%, at 30 7/8 after

Lehman Brothers

reiterated a buy rating on the provider of music download products and services. Analyst Michael Stanek wrote that he expects the stock will benefit from positive announcements from the company at the

Consumer Electronics Show

in Las Vegas later this week, along with a string of new content and distribution partnerships for Liquid Audio in the coming weeks.

But Stanek also noted that pressure on the stock from last week was due to year-end portfolio activity and anticipation of the lockup expiration on the stock. He wrote that the expiration of 10 million shares tomorrow should be a "nonevent" and that the stock was "not likely to see major selling from strategic investors and

venture capitalists, though some VC distribution is likely." Lehman has done underwriting for Liquid Audio.

(STMP) - Get Inc. Report

, which also has suffered of late, got some support from

Robertson Stephens

today. Analyst Michael Graham wrote that losses in the stock were largely the result of concerns over its lockup expiration, along with competitive pressures for the company. Graham said that the actual supply from the lockups "will be much less than anticipated" and that the competitive fears were "overblown." He added that there is potential for significant positive news when the company reports its fourth-quarter numbers in the third week of January. Shares of were lately up 1, or 2%, at 42 1/8. Robertson Stephens has done underwriting for the company.

Finally, those who missed their chance to buy Steve Harmon's

picks for 2000 yesterday can get another opportunity today -- and most of the stocks are at cheaper prices than where they finished yesterday. Among the stocks dropping today were

Net Perceptions


, which was down 5 1/2, or 11%, at 43 1/2 after gaining 7 points, or 19%, on Monday.

Pacific Internet


was down 11 1/8, or 16%, at 58 3/4 after rising close to 23 points, or 49%, on Monday.


(SPYG) - Get SPDR Portfolio S&P 500 Growth ETF Report

was down 7 9/16, or 15%, at 43 7/16 after gaining 13 points, or 34%, on Monday. And

Redback Networks


was off 16, or 9%, at 166 after gaining 4 1/2 points, or 3%, on Monday.