Out with the Internet, says Nasdaq

Nasdaq boots 13 Internet and IT-related companies out of its Nasdaq 100, an index of the tech-market's top 100 companies by capitalisation.

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By  David Ingham Published  December 21, 2001

Could it be the final act in the story of the dot-com boom and bust? In its annual shuffling of the Nasdaq 100 (an index of the top 100 companies by capitalisation), the tech-focused stock exchange swapped 13 Internet-related companies for a mixture of health and bio-tech related businesses.

“Unlike other major financial indices, the Nasdaq-100 is not a beauty contest,” said John L. Jacobs, president and chief executive officer of Nasdaq financial products services. “Companies, once dropped from the index, may rejoin it if their performance warrants.”

Companies booted out of the index are Ariba, BroadVision, CMGI, CNET Networks, 3Com, Inktomi, Level 3 Communications, McLeodUSA, Metromedia Fiber Network, Novell, Palm, Parametric Technology and RealNetworks.

Some of those companies, like Novell and 3Com, are almost household names, whilst others, like Ariba and Broadvision, were once at the forefront of the e-business and CRM craze. Their demise reflects just how severe the bursting of the dot-com bubble and the dramatic downturn in IT spending were in 2001.

There is some cheer however. Companies can return from the wilderness, as Symantec has proven by coming back into the Index this time around.

Of the companies that come onto the list, few of you are likely to have heard of most of them. How about ImClone Systems, Sepracor and Invitrogen?

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