was down 5% in preopen
and other Internet issues were also lower. After Tuesday's close,
analyst Henry Blodget said even the top companies in the sector could face short-term difficulties.
Blodget also cited
, saying that Yahoo! in particular is risky in the near-term because of the deteriorating online advertising market.
Yahoo! was down 4.1% in the preopen. Amazon.com was down 4.1%. Blodget said eBay's business is OK but that the stock is expensive.