>The latest downturn, which comes a day ahead of America Online's (AOL:NYSE - news) scheduled release of fiscal first-quarter financial results, continues the Net-stock slide that started in early September. The steep selloff has Net investors trying to decide what might be left standing when the selling eases. Judging by the market action, so far they're coming up empty.
Skidding
Tech stocks skidding since Sept. 1
Among the big losers Tuesday were AOL, down nearly 15% to $44.86 in afternoon trading; Yahoo! (YHOO:Nasdaq - news), down about 12% to $48.69; Disney Internet Group (DIG:NYSE - news), down 15.4%, and Internet service provider Prodigy Communications (PRGY:Nasdaq - news), down 12.5%.
Online advertising stocks got hit hard, too: CMGI's (CMGI:Nasdaq - news) Engage (ENGA:Nasdaq - news) fell 17.2%, and 24/7 Media (TFSM:Nasdaq - news) lost 20.6% of its value.
Internet investors may have thought they swallowed all the bitter pills in the medicine chest after the huge decline in technology stocks this spring. But once-ignored questions about profitability and growth prospects for Internet-based businesses have taken root, further dimming the outlook for these once promising stocks. Now, with a looming ad-spending slowdown sending these stocks plunging, the question is, When will it stop? |
