BW Web 20 Takes a Hit

Despite a near 4% second-quarter drop, the portfolio looks poised for a rebound thanks to lower prices and a still-hot Net economy

Just because you see a punch coming doesn't mean it won't hurt. Internet investors have learned this year just how true that is: The key benchmark for Internet stocks, the Amex InteractiveWeek Internet Index (IIX), is down 9.5% for 2006. It's actually not a huge shock: On Jan. 9, then-First Albany Corp. Web analyst Jason Avilio launched a much-discussed report that said a run in the second half of 2005 left Web stocks overpriced, even with the Net economy growing six times faster than the rest of the U.S. The stocks began tanking the next day.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.