Big Internet stocks took a pummeling Wednesday after priceline (PCLN) said it wouldn't meet revenue expectations for the third quarter.
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
. 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
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
, off 4.7%,
, off 3.98%, and
, which was off $3.81, or 12.5%, to $26.63. priceline ended the day down $7.88, or 42%, to $10.75.