In early trading yesterday, the Internet sector continued to fall hard, with investors trying to figure out whether things could get any worse. For one day, at least, things ended up getting better. Many Internet stocks staged a remarkable turnaround after losing a lot of ground early in the day.
Amazon.com (Nasdaq: AMZN) closed up 8-13/16 to 97-1/4 after trading as low as 82. eBay (Nasdaq: EBAY) fared even better, closing up 17-1/8 to 92-7/8 after trading as low as 70-9/32. Priceline.com (Nasdaq: PCLN) also staged a similar rally, closing up 11-7/8 to 78-1/8 after dropping as low as 59.
The bargain hunting in Internet stocks has obviously started in a serious way, but the sector still isn’t recovering across the board. Shares of America Online, for example, fell 3-1/2 to 83-15/16 on Thursday. You can expect the volatility to continue.