SAN FRANCISCO -- Oracle's (ORCL) - Get Report woes continued to weigh heavily on the Nasdaq, as shares dropped to their lowest level since Jan. 5 on huge volume. The database leader reported disappointing revenue growth after the close on Thursday.

Merrill Lynch

cut Oracle to an intermediate-term accumulate from buy but left a long-term buy on the stock.

NationsBanc Montgomery Securities

cut its rating to hold from buy.

Oracle earned 20 cents per share in the third quarter, a penny above

First Call's

consensus estimate. But that figure included a one-time gain from selling shares of

Oracle Japan

, a subsidiary that recently went public. Without the gain, Oracle's earnings per share would have been in line with consensus estimates of 19 cents.

More importantly, Oracle failed to meet Wall Street's total revenue and license revenue estimates. Applications license revenue rose only about 5% year-over-year, while database license revenue -- Oracle's core business -- grew only 10%. Analysts had expected applications licenses to grow about 20% and databases to increase about 15%.

Oracle easily topped the Nasdaq's most-active list with more than 75 million shares changing hands. The stock was last down 7 9/16 at 29 5/16.

CMGI Loses Some Luster

CMGI

(CMGI)

fell 19 7/6 to 162 9/16 after the company reported second-quarter earnings Thursday.

CMGI posted net income of $14.1 million, or 28 cents per diluted share. However, excluding the gains made from sales in its portfolio, the venture fund had a loss of 41 cents per share for the quarter ended Jan. 31. That loss was bigger than the 22 cents some analysts had expected.

Further, CEO David Wetherell also told investors in a conference call late Thursday that CMGI was unlikely to make a bid for

Lycos

(LCOS)

. Wetherell resigned from the Lycos board earlier in the week to find a better deal for Lycos shareholders than the one they were getting from the proposed deal with

USA Networks

(USAI) - Get Report

. Speculation had emerged that CMGI itself would make a bid for Lycos.

Wetherell also squelched speculation that a stock split was imminent, telling investors that there were no current plans for one in the near future.

Lycos last traded down 7 11/6 at 101 5/16.

DoubleClick Splits

Internet ad agency

DoubleClick

(DCLK)

jumped after announcing a 2-for-1 stock stock split late Thursday. Shares gained 11 7/16 to 118.

Don't Worry About Microsoft

Microsoft

(MSFT) - Get Report

shares eased after the software giant said late Thursday to expect third-quarter revenue to be $400 million, or about 8 cents per share, lighter due to

accounting for upgrade coupons related to

Office 2000

. Still, analysts say not to worry.

Microsoft expects to make up the loss with income from investments and said that the $400 million in deferred revenue will be shifted to the fourth quarter.

Many analysts are leaving their third-quarter estimates unchanged around 65 cents per share and raising fourth-quarter earnings estimates to account for the $400 million revenue shift.

Microsoft shares were last down 1 7/8 at 159 1/2.