Inktomi (INKT) shares dropped 18% after Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report said it would replace Inktomi as the search engine on its Microsoft Network with AltaVista. The news comes as Compaq (CPQ) moves to spin off AltaVista.
Inktomi dropped more than 30 points early on and was recently off 26 13/16 at 121 7/16. Compaq was up 2 13/16 at 49 1/2, while Microsoft was up 4 7/8 at 166 3/4.
In the agreement, AltaVista will be the primary search engine powering the Microsoft Network.
"Microsoft Network is not an 800-pound gorilla compared to
," said Stephen Franco, Internet analyst with
. Franco said the move comes as many of the large companies are "putting their stakes in the ground on what their online strategy is going to be," something he expects to persist over the next year.
Dodging Bullets at Intel
was firm in early trading after revising its plan regarding trackable computer chips. The change was detailed in a
story Monday. Intel was 3 13/16 higher at 134 3/8.