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Sellers Slash Nasdaq

Wall Street, California / SPECIAL REPORT: MARKET PLUNGE
| THE DAY'S ACTION

Tech-Heavy Index Leads Sell-Off as Global Woes Spread Panic

September 01, 1998|THOMAS S. MULLIGAN | TIMES STAFF WRITER

At some high-flying Internet companies, officials were philosophical about the market drop.

San Mateo, Calif.-based Inktomi, the producer of a popular Internet search engine, went public at $30 a share in June and zoomed to a peak of nearly $89 in July.

The stock has suffered a merciless battering in the last week. After closing at $75.50 last Tuesday, it has fallen to $49--capped by an $11.06 plunge Monday.

Kevin Brown, Inktomi's director of marketing, noted that employees are prohibited by federal rules from selling their stock for six months after the initial public offering. "It's all paper wealth at this point," he said. "If everyone got into a tizzy every time Internet stocks when up or down, nothing would get done around here."

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Times staff writer Ashley Dunn in Los Angeles contributed to this report.

More Coverage

* The Dow plunged more than 500 points, its second-worst point drop in history. A1

* Although nervous, individuals are still hanging on to their holdings. A1

* The market slide is expected to slow the year's historic merger pace. D6

* More companies are announcing plans to buy back their own stock. D8

* Things you need to know before selling your stock mutual funds. D9

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