RUMOR MILL
Tuesday, April 4, 2000
NASDAQ DROP ROCKS MUSIC STOCKS
Microsoft Ruling Might Have Contributed To Market Volatility
The Nasdaq took a hit yesterday (4/3), dropping more than 348 points, 7.63%, to 4223.84. It was Nasdaq’s largest point decline and fifth-largest percentage decline in its 30-year history. Some blamed the decline on the then-pending Microsoft antitrust ruling. The market closed before the ruling was handed down.
Music-related stocks took some of the hardest hits: InterTrust Technologies fell 23% to $32.68; Liquid Audio fell 15% to $11.25; MP3.com fell 14% to $18; RealNetworks fell 9% to $51.43; ARTISTdirect fell 8% to $6.96; and EMusic fell 5% to $6.
There was no confirmation to the rumors that the stock drop was related to a Microsoft suicide pact.
Musicmaker.com closed unchanged at $4.75, perhaps in part to its announcement yesterday of the opening of a new 31,000-square-foot facility for technology, production/fulfillment, and administration.
Interestingly, the recently beleaguered CDNow was among the few bright spots, closing up 3% at $3.90.
