MARKET CLOSE: Amazon.com weighs down 'Net stocks

2 min read

Internet stocks were roughed up Friday after some disturbing news about Amazon.com hit the Street. The Nasdaq composite fell 91 points to 3,845.61 while the Dow Jones industrial average gained 29 points to 10,4040.75.

The back-and-forth trading experienced this week reflects the general uncertainty heading into next week's Fed meeting.

"This is the same pattern that we see when we get within earshot of the FOMC meeting," said Charles Payne, head analyst at Wall Street Strategies. "People seek the safety of the blue chips and take their profits from the Nasdaq."

Amazon (Nasdaq: AMZN) plunged 8 1/8, or 19 percent, to a 52-week low of 33 7/8 after analysts predicted light sales in the second and third quarters.

eBay (Nasdaq: EBAY) lost 4 5/16 to 53 7/8 while America Online (AOL) and Lycos (LCOS) shed 3 1/4 and 3/16 a share, respectively.

On the IPO front, Accelerated Networks (Nasdaq: ACCL) soared up 32 7/8, or 219 percent, to 47 7/8 after it priced its IPO at $15 a share Friday, above its range of $11-13.

Manufacturer's Service (NYSE: MSV) and Qualstar (Nasdaq: QBAK) gained 5 1/4 and 23/32 a share, respectively, in their debuts.

Citrix Systems (Nasdaq: CTXS) fell 3/8 to 14 1/4 after announcing its founder and chairman, Edward E. Iacobucci, has resigned, and its CEO is shifting gears to president.

Intel (INTC) shares edged up 7/16 to 134 1/2 and Advanced Micro Devices (AMD) shed 3 5/8 to 87 5/8.

Micron Technology's (NYSE: MU) third quarter results saw more hype from analysts than investors Friday; the stock edged up 1 1/8 to 88 while analysts upped their estimates for the chipmaker.

Rambus (Nasdaq: RMBS) shares exploded up 17 9/16 to 114 11/16 after the company announced it had settled its patent lawsuits against Japanese electronic machinery maker Hitachi Ltd.

Among widely held PC stocks, Dell (DELL) lost 1 1/16 to 47 7/16; Gateway (GTW) dropped 3 5/16 to 58; Apple Computer (AAPL) closed off 2 1/16 to 51 11/16 and Compaq (CPQ) dropped 5/16 to 27 15/16.

Oracle (ORCL) dipped 2 to 79 1/2 while Microsoft (MSFT) and Sun Microsystems (SUNW) closed off 2 3/16 and 5 1/2 a share, respectively.