Net Stocks See Profit-Taking

Meanwhile, communication-chip manufacturers had a good day, led by Linear Technology.
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SAN FRANCISCO -- Much of the Internet sector was ripe for some profit taking. Well, it happened, and in a big way.

InfoSeek

(SEEK)

saw losses following its earnings report Tuesday. It closed down 19 1/8, or 24%, at 60 3/8.

Bankers Trust Alex Brown

downgraded the stock to buy from strong buy because of a shortfall in revenue.

Also among the day's losers were

CMGI

(CMGI)

, down 42 11/16, or 14%, at 255 1/8. That stock had gained more than 140 points from April 5 through 13. Also,

RealNetworks

(RNWK) - Get Report

, up more than 100 points in April, closed down 39 1/2, or 17%, at 189 1/2.

In advance of its earnings report after the close today,

Ameritrade

(AMTD) - Get Report

closed down 25 1/4, or 15%, at 148, dragging other online brokerages with it.

Leading, Not Following

Communication-chip manufacturers were among the day's top gainers due in part to a positive earnings report from

Linear Technology

(LLTC)

. Linear closed up 4 5/8, or 8%, at 61. Though the company matched earnings expectations, it reported a record net income of $49.8 million, which was up 6% year-over-year. It also reported that sales increased 8% sequentially, profit increased 9% sequentially and a record 38% return on sales.

Others in the sector benefited as well.

Xilinx

(XLNX) - Get Report

closed up 3 15/16, or 9%, at 47 3/4;

PMC-Sierra

(PMCS)

closed up 4 11/16, or 7%, at 75 15/16;

Maxim Integrated Products

(MXIM) - Get Report

closed up 3, or 5.5%, at 58.

Tomorrow's News from Japan Today

Consumer electronics companies are already salivating at the chance to digitize the world's television screens, and

Sony

(SNE) - Get Report

, the worldwide leader in broadcasting equipment, is taking one of the first steps. Sony will jointly develop digital editing systems for TV broadcasters with

IBM

(IBM) - Get Report

.

Time Warner's

(TWX)

CNN

will be the duo's first client, according to Japanese newspaper

Nihon Keizai Shimbun

.

--

Eric Moskowitz