Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

The Internet industry as a whole closed the day up 1.2% versus the S&P 500, which was unchanged. Laggards within the Internet industry included Internet Initiative Japan ( IIJI), down 2.5%, SMTP ( SMTP), down 2.1%, Wowo ( WOWO), down 3.1%, support.com ( SPRT), down 8.0% and Autobytel ( ABTL), down 2.5%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

support.com ( SPRT) is one of the companies that pushed the Internet industry lower today. support.com was down $0.11 (8.0%) to $1.26 on heavy volume. Throughout the day, 1,230,028 shares of support.com exchanged hands as compared to its average daily volume of 217,100 shares. The stock ranged in price between $1.22-$1.34 after having opened the day at $1.34 as compared to the previous trading day's close of $1.37.

Support.com, Inc. provides cloud-based software and services in North America. It offers Nexus, a cloud based software-as-a-service solution that provides automation and analytics for companies to resolve technology issues and optimize support interactions with their customers. Support.com has a market cap of $73.4 million and is part of the technology sector. Shares are down 35.1% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate support.com a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates support.com as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on SPRT go as follows:

  • SUPPORT.COM INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, SUPPORT.COM INC swung to a loss, reporting -$0.06 versus $0.20 in the prior year. For the next year, the market is expecting a contraction of 216.7% in earnings (-$0.19 versus -$0.06).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 404.4% when compared to the same quarter one year ago, falling from -$0.48 million to -$2.43 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, SUPPORT.COM INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for SUPPORT.COM INC is rather low; currently it is at 20.32%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -10.49% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$0.47 million or 113.83% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: support.com Ratings Report

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At the close, SMTP ( SMTP) was down $0.13 (2.1%) to $5.95 on light volume. Throughout the day, 4,939 shares of SMTP exchanged hands as compared to its average daily volume of 24,600 shares. The stock ranged in price between $5.95-$6.05 after having opened the day at $6.00 as compared to the previous trading day's close of $6.08.

SMTP, Inc. provides business-to-business marketing and communications products and services worldwide. SMTP has a market cap of $32.4 million and is part of the technology sector. Shares are unchanged year-to-date as of the close of trading on Wednesday. Currently there are 4 analysts who rate SMTP a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates SMTP as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on SMTP go as follows:

  • SMTP's very impressive revenue growth greatly exceeded the industry average of 5.4%. Since the same quarter one year prior, revenues leaped by 120.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • SMTP has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, SMTP has a quick ratio of 2.14, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, SMTP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$0.58 million or 669.30% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: SMTP Ratings Report

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Internet Initiative Japan ( IIJI) was another company that pushed the Internet industry lower today. Internet Initiative Japan was down $0.24 (2.5%) to $9.55 on light volume. Throughout the day, 904 shares of Internet Initiative Japan exchanged hands as compared to its average daily volume of 2,100 shares. The stock ranged in price between $9.47-$9.55 after having opened the day at $9.53 as compared to the previous trading day's close of $9.79.

Internet Initiative Japan Inc., together with its subsidiaries, offers Internet connectivity, WAN, outsourcing, systems integration, and equipment sales services primarily in Japan. It operates through two segments, Network Services and Systems Integration Business, and ATM Operation Business. Internet Initiative Japan has a market cap of $892.2 million and is part of the technology sector. Shares are down 2.9% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Internet Initiative Japan a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Internet Initiative Japan as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

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Highlights from TheStreet Ratings analysis on IIJI go as follows:

  • Although IIJI's debt-to-equity ratio of 0.27 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.28, which illustrates the ability to avoid short-term cash problems.
  • IIJI, with its decline in revenue, underperformed when compared the industry average of 5.4%. Since the same quarter one year prior, revenues slightly dropped by 9.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for INTERNET INITIATIVE JAPAN INC is rather low; currently it is at 22.96%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.86% significantly trails the industry average.
  • Net operating cash flow has decreased to $24.10 million or 21.91% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

You can view the full analysis from the report here: Internet Initiative Japan Ratings Report

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