Internet stocks were pushed and pulled by a technology sector that opened sharply lower and bounced back quickly, but has seen renewed selling of late.
TheStreet.com Internet Sector
index was down 12.69, or 1.1%, to 1111.39, after trading in a range between 1095.15 and 1150.11.
TheStreet.com New Tech 30 was down 19.11, or 2.5%, to 737.06.
Among stocks on the move,
was recently down 12 15/16, or 9%, to 132 1/8 after trading as low as 134.
was down 10 5/8, or 7.5%, to 131 7/8, though it traded as low as 127 5/8.
was down 7 1/8, or 8%, to 80 3/4.
Besides the harsh selloff, there was some news in the sector.
expanded its reach, announcing a strategic alliance that will give it a 5% stake in magazine publisher
. The two companies will develop a series of new Web ventures. CMGI will receive 8 million shares of Primedia in exchange for 1.53 million shares of CMGI. The entity will access and leverage CMGI's related products and services. CMGI was lately down 2 13/16, or 2.5%, to 109.
According to the companies, the effort will identify key vertical areas, spanning both business-to-consumer and business-to-business categories, such as agribusiness, digital entertainment, electrical/construction and telecommunications, for these new companies. The B2B ventures will cover vertical online communities being developed by Primedia's
, the company's B2B portal.
was down 5/8, or 2%, to 28 7/8. The online brokerage said it has set a marketing pact with hotel giant
. And speaking of online brokerages, check out
survey, where readers spoke out on the brokerages.
was down 1/2, or 1.6%, to 31 1/4.
had begun talks with StarMedia "about unspecified expansion plans in the region." The story noted that StarMedia is a rival to Telefonica's Internet subsidiary
. Terra Networks was down 3 1/2, or 4.3%, to 77 1/2.
upped its rating on
to buy from neutral with a price target of 200. Sycamore was down 15/16, or 1%, to 124. In light of the events over the past couple of days in the market, it's interesting to see what Lehman analyst Steven Levy has to say about valuations among companies like Sycamore.
"We have recently become less conservative in our view of valuations, especially for hyper-growth companies in markets that are just beginning to emerge and are potentially huge. We believe that Sycamore is such a company and that the intelligent optical networking market is potentially one of the most exciting and open-ended segments of the telecommunication equipment industry."
Levy also applied his new valuation model to
, upping his rating on that stock last month.