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CNNfn tech stock report
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December 1, 1998: 4:25 p.m. ET
Computer, Internet issues recover from recent profit-taking
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NEW YORK (CNNfn) - Technology shares posted healthy gains Tuesday as Internet and computer shares bounced back from previous-day losses.
The often-volatile Internet sector has been especially turbulent in recent weeks as investors flock to companies that make even the most mundane corporate announcements.
Ryan Jacob, Internet Fund portfolio manager, said individual investors are largely responsible for the volatility of Internet shares over the last few weeks.
"Where we've seen most of the action has been in the pure e-commerce plays," Jacob said.
"Unfortunately what's happened is we've had a little bit of a spill-over effect where a lot of this interest has moved into companies where if they're announcing a new Web site or redesign, they've seen their stock prices triple or quadruple, and that part of this rise is quite unhealthy."
That type of action continued in Tuesday trade. Amazon.com Inc. (AMZN) shot up 17-9/16 to close at 209-9/16 after the online bookseller announced it will be the exclusive books and music merchant for Web broadcaster Broadcast.com Inc. and Hoovers Online. Broadcast.com (BCST) shares fell 3-1/2 to 62-1/2.
Bluefly Inc. (BFLY) soared 6-1/8 to 20-15/16 after the online fashion outlet launched a version of its store on Yahoo Inc.'s shopping channel.
Shares of Yahoo (YHOO) jumped 14-1/4 to 206-1/4.
Computer shares, another sector that has experienced recent volatility, also climbed higher in Tuesday trade. Computer companies had seen their stocks climb higher on positive prospects for computer sales only to retreat in recent days.
"Up until a week ago, companies had been running on expectations over fourth-quarter earnings," said Jeffrey Maxick, analyst at Madison Securities. "I don't think people are expecting anything bad. But more recently, it got to the point where these stocks ran up so much that a little profit taking ensued."
Among the companies posting healthy gains Tuesday included Dell Computer Corp. (DELL), which added 4 to close at 64-13/16.
Apple Computer Inc. (AAPL) rose 2-3/16 to 34-1/8; IBM Corp. (IBM) climbed 3-5/8 to 168-3/4; and Sun Microsystems Inc. (SUNW) jumped 5-13/16 to 79-7/8.
With the entire sector enjoying strong gains, technology bellwethers turned in a strong performance. Intel Corp. (INTC) soared 7-3/8 to 115; Cisco Systems Inc. (CSCO) rose 4-3/8 to 79-3/4; and Microsoft Corp. (MSFT) jumped 7-9/16 to 129-9/16. 
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