Chip.. read..this..Not a good day for the Tulips!!!
Whatever SATH may be tomorrow or the next day...Lycos really screwed up SATH's timing....giving a good old excuse for the tulip crowd to do a little correcting....Interesting to see whether this "correction" will continue or not...Since these internets always seem to defy gravity....though I can never imagine who'd be chasing any of these stocks...AMZN..YHOO...SEEK or whatever...anyway...certainly not me..However...have heard a lot of horror stories about people trying to short them....Plus would be interesting to find out when so many of these companies have their restricted shares becoming unrestricted....Now these restricted shares coming onto the open market will make many of these high flying internets really swoon IMO...
=========================
"Net hit by Lycos deal, market decline
Power outage at MCI WorldCom's UUNet unit"
cbs.marketwatch.com
By Jeffry Bartash, CBS MarketWatch
Last Update: 5:37 PM ET Feb 9, 1999 Internet Daily
Net Headlines
NEW YORK (CBS.MW) -- Net stocks led a broad market decline Tuesday, as investors shunned Lycos' proposed marriage to USA Networks. A power outage, meanwhile, knocked out the Silicon Valley hub of wholesale Net provider UUNet.
Internet stocks fell across the board: portals, access providers, online traders, commercial-site operators, all felt investors' sting. The Goldman Sachs Internet Index dived 8.4 percent, while the Amex Internet Index slid 6.7 percent, dragging the Nasdaq down 3.91 percent. The Nasdaq suffered its third biggest one-day point drop ever. See Market Snapshot
Some of the biggest losers:
--Ticketmaster Online CitySearch Inc. (TMCS), off 15 1/2, or 26.8 percent, to 42 1/4;
--Lycos (LCOS), down 33, or 25.9 percent, to 94 1/4;
--AmeriTrade (AMTD), which slumped 14 15/16, or 18.7 percent, to 65 1/16;
--theglobe.com inc (TGLO), which lost 9 3/8, or 16.4 percent, to 47 7/8;
-- and Network Solution (NSOL), 26 1/8, or 15 percent, lower to 148.
Bay Area blackout
While Internet stocks spiraled lower Tuesday, some web users were temporarily unable to get accurate reads on what was happening because of trouble at UUNet. Spotty Internet access was reported in the San Francisco Bay Area throughout the morning and early afternoon, though service is now back on track.
Problems at UUNet, an MCI WorldCom subsidiary, lasted for about two hours and were isolated to the Palo Alto area, said spokeswoman Megan Lamb. She attributed the Bay-Area wide power outage to severe rain storms.
"Sometimes natural disasters happen," she said.
Yet some customers say Internet disruptions with UUNet are not uncommon. One technical support official at a Bay Area internet service provider, who asked not to be named, said: "That's actually been happening more often than I'd like to think in the last few months."
Lamb said she was unaware of such problems. MCI WorldCom (WCOM) shares dipped 2 5/16 to 76 3/4.
Carnage is widespread
While Internet companies got pummeled along with the rest of the market, the decision by Lycos to accept a buyout offer from USA Networks greased the slide in Net stocks. Investors were not happy with the deal, a complicated three-way transaction that also includes Ticketmaster.
The deal proved a boon to USA Networks (USAI) shareholders, however.
Other search engines also sustained big declines. Yahoo, (YHOO), the only remaining independent portal operator, fell 17 7/8 to 140 3/4. Excite (XCIT) swooned 8 to 85 1/8. Infoseek (SEEK) dropped 7 7/8 to 57 1/4. And CNET (CNET) tanked 25 3/4 to 98 1/2. AOL (AOL), the largest provider of online service with 16 million customers, tumbled 11 to 148.
Other big names to suffer at the hands of investors: Amazon.com, (AMZN) off 9 1/8 to 100 ; eBay, (EBAY) down 18 1/8 to 212 7/8, Real Networks (RNWK), which fell 7 13/16 to 57 7/16; and Mindspring (MSPG). It lost 9 11/16 to 75 11/16.
One company to go against the tide: Inktomi Corp. (INKT), the maker of web-search services used by portals such as Yahoo. It jumped 4 3/8, or 8.2 percent, to 57 7/8. The company did not release any news, but generated some buzz at a Goldman Sachs Technology Symposium on Tuesday. |
