Net Stocks Sell Off as priceline Leads the Way - TheStreet

Big Internet stocks took a pummeling Wednesday after priceline (PCLN) said it wouldn't meet revenue expectations for the third quarter.

Pounded
TheStreet.com Internet Sector index takes a tumble.

While priceline's problems -- the company

blamed weakness in its core airline ticket business for the shortfall -- appear unique, the announcement came at just the wrong time for companies like

Yahoo!

(YHOO)

. Investors have had doubts about Yahoo! in recent months amid slowdowns in online ad spending, especially by cash-short Web companies.

Yahoo! tumbled nearly 12% Wednesday, falling $12.06 to $90.38.

TheStreet.com Internet Sector

index slid 6.1%.

"I think priceline's problems were specific to priceline, but the market is weak and people have been losing confidence in a lot of these big names," says Rob Zidar, co-portfolio manager of

Merrill Lynch's

(MANTX)

Internet Strategies fund. "People have been looking for a reason to sell."

priceline's announcement apparently gave them that reason. Among the other big names to fall Wednesday were

Amazon.com

(AMZN) - Get Report

, off 4.7%,

America Online

(AOL)

, off 3.98%, and

CMGI

(CMGI)

, which was off $3.81, or 12.5%, to $26.63. priceline ended the day down $7.88, or 42%, to $10.75.