November 7, 2011, 11:21 AM

Holiday spending worries contribute to another decline in e-commerce shares

The Internet Retailer Online Retail Index fell 2.72% last week.

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E-commerce stocks fell more sharply than the broader market last week, possibly a reflection of investor concern about how much consumers will spend, online or off, this holiday season.

“The sector in general remains under pressure as investors worry about the consumer spending environment for the upcoming holiday period,” says Colin Sebastian, an analyst who follows e-commerce stocks for securities firm Robert W. Baird & Co. He says investors also have expressed concern about increased spending at such e-commerce companies as Amazon, eBay, Vistaprint, Netflix and Nutrisystem.

The Internet Retailer Online Retail Index, which tracks the stocks of 25 online retailers and e-commerce technology providers, declined 2.72% last week, as the market in general moved lower. The Dow Jones Industrial Average fell 2.03% and the Standard & Poor’s 500 Index was off 2.48%.

Only eight of the 25 Online Retail Stocks advanced. Among them were e-retailer Netflix and e-commerce technology provider Akamai Technologies, which Sebastian points out were bouncing off recent lows. Among the losers were ValueClick, Digital River and Nutrisystem, which either missed their third quarter earnings projections or issued disappointing projections for the fourth quarter, Sebastian says.

Here are the best-performing stocks last week in the Online Retail Index and the percentage gain in stock price for each:

• Bidz.com, 9.8%

• DemandTec, 7.7%

• Netflix, 7.0%

•Akamai, 5.4%

• LivePerson, 4.9%

Here are the Online Retail Index stocks that performed least well last week and the percentage loss in stock price for the week:

• U.S. Auto Parts Network, -13.7%

• Keynote Systems, -12.5%

• eGain, -11.2%

• Overstock, -10.2%

• Nutrisystem, -8.6%

The 25 companies in the Internet Retailer Online Retail Index are: 1-800-Flowers.com Inc., Akamai Technologies, Amazon.com Inc., American Greetings Corp., Bidz.com Inc., Blue Nile Inc., Bluefly Inc., Coastal Contacts Inc., DemandTec Inc., Digital River Inc., eBay Inc., eGain Communications Corp., Keynote Systems Inc., LivePerson Inc., Netflix Inc., NutriSystem Inc., Overstock.com Inc., PetMed Express Inc., Shutterfly Inc., Systemax Inc., U.S. Auto Parts Network, United Online Inc. (owner of FTD.com), ValueClick Inc., Vistaprint Ltd and Vitacost.com Inc.

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