CNet Networks Inc. (CNET) shares fell Tuesday as much as 16% in the wake of the company's financial results, while Internet-sector stocks traded in mixed fashion.
The Dow Jones Internet Index was down 0.5% to 97.52, while the technology-heavy Nasdaq Composite Index was up fractionally at 2333.52.
CNet shares lost 16.4% to stand at $11.08 in recent dealings.
Late Monday, the company reported a first-quarter loss, hurt by stock-option expenses and other costs, and also cut its full-year profit forecast due in part to what it called weaker-than-expected advertising sales.
Stifel Nicolaus analyst Kit Spring, who rates CNet as hold, wrote that new Web content coming from both traditional media companies such as Viacom Inc. (VIA) (VIA) and News Corp. (NWS) and from other upstarts may be reducing the pace at which CNet can increase its top line and improve margins.
In addition, JMP Securities downgraded CNet to market perform from a rating of market outperform.
Among the Net sector's bellwethers, shares of Google Inc. (GOOG) were off 1.4% to $434.53 in recent trading, and Yahoo Inc. (YHOO) was off 1.8% to $32.44. Amazon.com Inc. (AMZN) which reports results after the market close, also saw its shares trade slightly lower to $35.48.
EBay Inc. (EBAY) shares were down slightly to $34.56 a day after officially announcing eBay Express, a site with only fixed-price items. The move puts the online auctioneer in closer direct competition with online retailers such as Amazon.
Rounding out the sector, CheckFree Corp. (CKFR) shares gave up 1.8% to $53.75 ahead of its quarterly results, also due out after the market's close.