Amazon.com closed down 25 1/4, or 13%, at 168 1/4 after it beat expectations for the first quarter, but frightened investors with big spending plans.
While Internet stocks showed signs of weakness, there was no panic selling. A couple of stocks, hammered by profit-taking since reporting earnings earlier this week, recovered.
, which traded from 234 on Tuesday to a low of 179 today, recovered to close up 22 7/16, or 12%, at 215. And
, which fell 37 points in the previous two sessions, closed up 11 1/2, or 8.5%, at 147.
closed up 31, or 17%, at 215 amid speculation that the company will introduce a new version of RealPlayer at a press conference Monday.
Dan Marciano, head of equity trading with
, traces what occurred today to what happened a little more than a week ago when Internet stocks did sell off in a big way.
Marciano said "there is more caution" in the marketplace now, and investors didn't rush back in after getting burned during the one-day selloff, so there was not as much panic selling today. After the market slipped early in the session, new buyers stepped in, he said.
Marciano also said he does not see rotation out of the tech sector and into cyclicals. He said gains in non-tech sectors are coming on strong fundamentals, with good earnings reports and a low inflation outlook contributing to the strength in the broader market.
was typical of what was seen in the sector. AOL traded to a low of 130 in the morning, but ended up closing down only 1 5/8, or 1%, at 141 3/8.
It's tough to debut on a day when the market is on shaky ground, but that's what
(MPTH:Nasdaq) was stuck with. The Web software developer began trading today and nearly tripled from the 18 level where it was priced, closing up 32 5/8, or 181%, at 50 5/8.
In other IPO news,
, a Web consulting firm, has made steady progress since it began trading on Tuesday. It closed up 5 1/8, or 11%, at 51 1/2. Also,
(TJOB:Nasdaq), a UK-based Internet recruitment services company that began trading on Wednesday, closed down 3 3/8, or 17.6%, at 15 13/16.