To: Oeconomicus who wrote (2102 ) 3/10/1998 4:12:00 PM From: Candle stick Read Replies (1) | Respond to of 164684
Internet stocks turn mostly lower as rally fades NEW YORK, March 10 (Reuters) - Shares in Internet-related companies retreated from their session peaks on Tuesday as their scorching rally lost steam as quickly and suddenly as it started on Monday. Companies like Yahoo Inc <YHOO.O>, Lycos Inc <LCOS.O> and EarthLink Network Inc <ELNK.O> all got off to strong starts, extending their sharp gains from Monday to set new record high marks only to reverse those gains and turn lower by afternoon. In a note on the group, Salomon Brothers analyst Marc Usem linked the rapid ascent by the Internet stocks to a relative lack of liquidity in the shares, a factor he said could contribute to just as quick a decline once momentum faded. "The small float among Internet issues increases share price volatility, causing capital inflows and outflows from the sector to have a disproportionate impact," Usem said. "We would caution would-be investors to keep a keen eye on momentum. "We do not believe the one day jump in prices was related to a fundamental change." In late afternoon, Yahoo was down 9/16 to 87-1/4 after earlier reaching 92-3/8. EarthLink was off 3/4 to 54-5/8 after topping out at 58-7/16 and Lycos shed 1-1/4 to 44-1/2 after jumping to 48-3/4 earlier in the session. Among other Internet stocks, PSINet Inc <PSIX.O> reversed early gains to dip 5/16 to nine and Amazon.com Inc <AMZN.O> backtracked 1/2 to 83 after peaking at 88-1/4. Excite Inc <XCIT.O> bucked the trend, rising 1-3/4 to 55-1/4, although even that level was well shy of a session high 59-1/4. ((Richard Melville, New York newsroom, 212-859-1731)) REUTERS Rtr 15:42 03-10-98