Online retail stocks lacked direction Tuesday, with Drugstore.com Inc. falling after the company lowered its fiscal 2008 outlook, citing a challenging economic environment.
The online pharmacy's shares fell 37 cents, or 15.2 percent, to $2.07 in afternoon trading. Earlier, the shares traded as low as $1.75, their lowest price since December 2002.
Drugstore.com said late Monday that its quarterly loss narrowed to 3 cents per share on $120.6 million in revenue, beating analysts' predictions. However, the company reduced its full-year forecast for results and revenue.
In a client note, Canaccord Adams analyst Domenic LaCava kept his "Buy" rating for the stock and decreased his price target by 25 cents to $3.25.
"We point out that revenue has been revised down by only 2 percent, but coupled with CFO transition could cause a hiccup amidst turnaround," he said.
Drugstore.com said Monday that its chief financial officer will leave May 29 and be replaced by two senior financial executives.
LaCava also took the stock off his "Best Ideas" list, noting the CFO transition "unfolds ahead of expected 2008 profitability."
Meanwhile, shares of online retailer Amazon.com Inc. rose 52 cents to $76.44.
Amazon said on Tuesday that retail diamond sales through Amazon.com LLC rose more than 100 percent during the first quarter. The company said pendants, stud earnings and diamond chronograph watches were popular items.
Shares of Web jewelry retailer Blue Nile Inc. fell $1.69, or 3.5 percent, to $46.07.
Blue Nile is scheduled to report its first-quarter results after the closing bell.
Elsewhere in the sector, shares of online auctioneer eBay Inc. fell 12 cents to $30.74.
Goldman Sachs analyst James Mitchell, who rates the stock "Buy," said in an investor note late Monday that eBay's listings from April 1 through May 4 rose 20.7 percent year over year, with core listings rising 20.2 percent and store listings rising 23.5 percent.
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