Feeds

Web companies see stocks fall

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

  • alert
  • submit to reddit

New hybrid storage solutions

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 next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.