When it rains, it pours. Internet stocks were pouring losses as the Net sector got caught up in the selling frenzy seen elsewhere in the market.
TheStreet.com Internet Sector
index closed down 47.87, or 4.2%, at 1096.62.
TheStreet.com New Tech 30 finished down 19.27, or 2.6%, at 711.12.
There was no trigger for the losses in tech, though some blamed the
for dragging down the
. The Comp suffered its seventh-largest point drop in its history. However, that's still only a 3.0% decline, so no crying from all of you who rode it higher last year. With the Nasdaq reaching another record high yesterday, traders were undoubtedly looking to take profits, particularly in front of a long weekend. And, as has often been the case when the market gets on a roll, momentum played a large role in the selling.
Investors were again left wondering whether this was the start of something bigger. As has been seen numerous times in the past few months, investors have supported most any dip in the Nasdaq. But with earnings season over for the most part, the sector may need some catalysts to keep the profit-takers away.
Communicating through email, Bob Dickey, director of technical research with
Dain Rauscher Wessels
that the Internet sector remained "one of the last bastions of strength in the market," but that may not continue, as many of the stocks in the sector carry such high valuations that investors may look to dump them. Dickey also said there is support in the DOT at 1020, but if that level does not hold, he doesn't see minor support until 900 and more major support at 800.
Among the stocks suffering from profit-takers was
, which fell 17 1/16, or 18%, to 81 15/16. The stock traded as high as 125 5/8 on Wednesday after it bought rival
, which has been a sensation since going public last week, closed down 35, or 11.7%, at 265.
ended down 17 1/16, or 8.8%, at 176 5/8.
Net bellwethers suffered as well.
closed down 7 1/16, or 4.3%, at 156 1/8;
finished off 2 3/16, or 4.1%, at 50 13/16;
ended down 4 1/4, or 6%, at 64 3/4 and
dropped 8, or 5.5%, to 137 1/4.
There were a couple of stocks on the plus side.
closed up 4 1/8, or 6.6%, at 66 15/16 after
Credit Suisse First Boston
upgraded the stock to strong buy from buy with a 100 price target. Beaten-up
closed up 2 3/16, or 2.4%, at 92 15/16 as it finally found some relief after suffering sharp losses the past two sessions. Also,
added 2 1/8, or 4.1%, to 53 7/8 amid ongoing rumors that AOL would acquire a controlling interest in the company from
closed up 20 1/4, or 13.5%, at 170 1/4. The company said that it had won business from a number of firms, including
. The companies will use E.piphany software to get insight into their customers' needs and behaviors.