E-tailers Get Hammered After Online Shopping Declines 25%

Also, EToys and Value America were both downgraded by Robertson Stephens from buy to attractive.
Author:
Publish date:

Updated from 12:18 p.m. EST

E-tailers felt the post-Christmas blues Monday, as shares in the sector dropped across the board.

Amazon.com

(AMZN) - Get Report

, the leading e-commerce site, saw its shares decline 8 11/16, or 10%, to 81 3/8 in afternoon trading Monday.

EToys

(ETYS)

, the online toy company, dropped 4 1/4, or 14%, to 26 3/4. Online mall

Value America

(VUSA)

dropped 3/8, or 5%, to 7 5/16.

Barnesandnoble.com

(BNBN)

, the online subsidiary of

Barnes and Noble

(BKS) - Get Report

, was down 7/16, or 3%, to 15 3/16.

(Amazon.com settled down 8 13/16, or 10%, to 81 1/8, while EToys closed down 5, or 16%, to 25 15/16. Value America ended down 7/16, or 6%, to 7 1/4. Barnesandnoble.com closed down 5/8, or 4%, to 15.)

E-tailer shares may have been dampened by the news that online shoppers spent less than $900 million in the week ended Dec. 19, down 25% from the previous week's peak of $1.2 billion, according to a survey of 3,004 home-based Internet users by

Goldman Sachs/PC Data Online

. Also, EToys and Value America were both downgraded by

Robertson Stephens

from buy to attractive.

Last week,

Media Matrix

reported that the number of visitors to e-commerce sites increased 37% over the holiday shopping period last year.

And Seema Williams, an analyst with

Forrester Research

, a Boston-based e-commerce research firm, said the firm now expects spending online to exceed its original $4 billion projections.

Bizrate.com

, a Los Angeles-based company that tracks orders from roughly half of all e-commerce sites, said online sales between Nov. 26 and Dec. 26 totaled $3.36 billion from 36 million orders. That is up from $730 million from the same period last year.