SAN FRANCISCO -- Tech investors still weren't finding much relief this morning from yesterday's sharp selloff, spurred by Amazon.com's (AMZN) - Get Report miserable performance and the cautious outlook expressed yesterday by Alan Greenspan.
TheStreet.com Internet Sector
index was down 3.77 to 589.98 in early trading. Shares of Amazon.com were recently trading up 1/16 to 107 1/4 after reaching a high of 110 early in the session. The stock dropped 18 points on Thursday, the first trading session after the company reported its
quarterly results, as investors continue to fret about when the company will turn a profit.
In his weekly Web report,
BancBoston Robertson Stephens
analyst Keith Benjamin wrote that although nearly all of the Net stocks he covers have reported better-than-expected earnings, "stocks feel heavy in anticipation of a slow August."
Looking ahead to next month, Benjamin said that he expects investors will try to guess whether to buy at the beginning or the end of the month. "In our view, it has been better to be a bit early, as most moves in the group have tended to be sharp."
Benjamin also addressed the recent action in Amazon.com and
, which both have been out of favor lately.
"We expect AOL to be among the first to recover, helped by a renewed appreciation of its strategic progress. For stocks like Amazon.com, we expect investors may wait a bit longer into September to see
an increase in shopping spending," he wrote. In recent trading, AOL was down 4, or 4%, at 106 1/2.
Shares of a number of companies which reported quarterly results last night were moving this morning.
, a supplier of high-speed Internet access equipment, was up 8 1/4 or 6%, at 156 1/4 early on. The company, which just went public in May, reported a second-quarter loss of 16 cents a share, 3 cents better than the
estimate and narrower than the pro-forma year-ago loss of 18 cents. Net revenue for the quarter was $11.1 million compared with $1.3 million for the same period in the prior year. It also set a 2-for-1 stock split.
The company further said that
Morgan Stanley Dean Witter
, the lead underwriter for its initial public offering, has agreed to an early release of the lockup restrictions on up to 3 million shares of Redback stock. Shares will be available for sale no earlier than July 27.
Copper Mountain Networks
was up 11 1/2, or 13%, at 102 recently. The supplier of digital subscriber line technology matched the consensus expectation with earnings of 9 cents a share vs. a year-ago loss of 21 cents. Revenue was $22.9 million vs. $1.3 million in the second quarter of last year and $13.2 million in the first quarter of this year. Following the report, Morgan Stanley Dean Witter, an underwriter for Copper Mountain, upgraded the stock to outperform from neutral and set a price target of 120 on it.
were lower despite the company besting analyst estimates by a penny last night. The stock was down 5 5/8, or 14%, at 33 3/8 early today. Sportsline reported a second-quarter loss of 55 cents vs. the 56-cent Street estimate and the 41-cent loss a year ago. Revenue was $13 million compared to just over $7 million a year ago.
On the IPO front,
5 million-share IPO top-range at $17 last night. The company provides customized insurance quotes over the Internet. Its price range was raised to $16 to $17 from an earlier range of $11 to $13. Also,
Donaldson Lufkin & Jenrette
, an Internet based messaging and communications provider, at $9.50 last night.