Bonds Rebound but Net Stocks Still Can't Find Relief
Interest rates' upward march has squeezed Internet stocks in recent sessions, but a reversal in the bond market Tuesday failed to provide relief for Net stocks.
TheStreet.com Internet Sector
index was down 8.47, or 1.5%, at 543.33 in early trading. Despite the drop, the DOT has now given back roughly 38% of the 150-point gain it made between Aug. 5 and last Thursday.
The sector continued to take its cue from the bellwether stocks, which remained mired in a slump.
Amazon.com
(AMZN)
, which dropped 9 1/4 points on Monday, was down an added 5 1/4, or 4.5%, at 114.
Yahoo!
(YHOO)
was off 3, or 2%, at 140 13/16.
Even news of a deal among heavyweights
eBay
(EBAY)
and
America Online
(AOL)
TheStreet Recommends
was not enough to help the sector. The companies launched a co-branded site designed to provide AOL members access to eBay's site in an AOL format. The venture marks the latest in a series of joint efforts between the two companies. eBay traded as high as 122 on the open, but was recently down 2, or 2%, at 117 7/16. AOL was off 2 7/16, or 2.6%, at 90 13/16.
Supply has been a concern in the Net sector and there was news late Monday that
Portal Software
(PRSF)
filed with the
Securities and Exchange Commission
to sell up to 5 million shares. Portal, which develops and sells real-time Internet business infrastructure software, will offer 2 million shares and stockholders will offer 3 million. The stock went public in May.
TSC's
Beth Kwon
examined the initial public offering market in a
piece Tuesday.
On the upside,
Fatbrain.com
undefined
was up 3 9/16, or 25%, at 18 9/16. The online retailer of professional books unveiled an
eMatter
program, a digital publishing model that allows publishers and authors to publish and sell works online.
