Is it starting? Is a post-

Yahoo!

(YHOO)

earnings selloff starting even before Yahoo! reports earnings? Perhaps, though any reports of the death of the Internet sector in recent weeks have tended to be exaggerated.

Yahoo! continued to be a drag on the sector, down 33 9/16, or 7.7%, at 402 1/2 ahead of its postclose earnings release.

TheStreet.com Internet Sector

index was down 36.99, or 3.2%, at 1124.18 in recent trading.

While Yahoo! is expected to beat earnings estimates of 15 cents a share and to show good growth in other key areas, as our own James Cramer

pointed out earlier, the bar is set high on Yahoo! and just beating estimates sometimes isn't enough. In addition, the market has largely priced in a 2-for-1 split on the stock, and it may need a larger split to appease investors who have bought the stock near or above the 400 level.

Yahoo: Join the discussion on our

message boards.

Yahoo! wasn't the only stock to see sell-the-fact selling before the fact.

CMGI

(CMGI)

, which splits 2 for 1 after the close today, was down 22 3/8, or 7%, at 284 1/8 in recent trading.

But a split announcement was helping shares of

B2B play

Kana Communications

(KANA)

, one of the leading point-gainers on the

Nasdaq

after its board of directors approved a 2-for-1 stock split. Kana was up 30 1/8, or 15.3%, at 227 1/8, though it had traded as high as 243 1/2.

Network services provider

Digital Island

(ISLD)

was up 9 3/16, or 10%, at 101 15/16 after it

said Tuesday that it has struck a strategic partnership with

Time Warner's

(TWX)

broadband cable network

RoadRunner

in a deal Digital Island said will help expand its content delivery network.

Both

Juno Online Services

(JWEB)

and

Ariba

(ARBA)

were trading higher because of their quarterly reports.

Juno was up 5, or 13%, at 43 after it reported a lower-than-expected loss this morning. Juno reported a per-share fourth-quarter loss of 45 cents vs. the 55-cent loss estimate from

First Call/Thomson Financial

. Juno hinted at better-than-forecasted earnings Friday, when it reported that subscriptions to its premium service were up 38% vs. the third quarter.

Ariba posts numbers after the close and is expected to report a loss of 12 cents a share for its fiscal first quarter. It was up 3 1/4, or 1.7%, at 197 1/4 ahead of its report.