Feeds

Web companies see stocks fall

Stock markets' love affair with the Internet could be on the rocks

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

Net companies have taken a battering on the stock market this morning after a week of hype left many people wondering if the UK was about to experience a US-style boom in technology shares. Dixons -- the company behind the successful free Internet Service Provider (ISP) Freeserve -- fell 61.5p this morning and Internet Technology Group (the company behind Global Internet) saw its shares fall 20 per cent. On-Line -- which operates games on the Internet -- had seen its share price go through the roof this week but it dropped some 44 per cent on the morning's trading. Zergo and Energis -- other Net-related companies that have hogged the financial pages of the daily newspapers during the last five days -- have all fallen back during the morning's trading. The question is, is this the end of the UK's Web-led boomlet? Has the market called time on "Web-crazed investors", as the Daily Mail put it yesterday, even before it really got started? Or, is this just a timely blip to ward off gullible investors who are too easily tempted to back a company -- any company – just as long as it has something to do with the Net? Or, has it got anything to do with the fact that yesterday, stocks in the US -- including Net shares such as Yahoo!, Amazon.com and AOL which all posted large losses -- tumbled as investors indulged in synchronised profit-taking? Who knows? Either way, yesterday's plummet was unfortunate for John F. Luikart, chairman and CEO of Sutro & Co, of one of the oldest and largest regional securities firms in the business. Speaking to an audience of senior financiers yesterday evening, he said the Internet stock bubble was certain to burst. And when it does, the people holding the stocks will suffer huge losses. Nice timing, John. Had he delivered his speech 24 hours earlier, he could have been hailed a financial guru as he spotted the imminent collapse of Net stocks. The fact that he made his prediction after the Dow Jones closed last night just takes the edge off his timely oration. It would be foolhardy to say that the US Net share bubble has burst, but someone, it seems, has definitely let some air out. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.