Amazon shares sink; Net sector slides By Scott Banerjee, MarketWatch Last Update: 2/3/2006 10:07:06 AM Data provided by SAN FRANCISCO (MarketWatch) -- The Internet sector opened lower Friday, led by shares of Amazon.com Inc., which fell 11% after the online retailer said profit fell 43% from a year earlier. The Dow Jones Internet Index (DJI_DJINET) was down 1.6% to 93.31, while the technology-heavy Nasdaq Composite Index ($COMPQ) fell 15.66 points to 2,264.83. Amazon (AMZN) shares last traded at $38, as costs rose and sales were below expectations. Amazon reported fourth-quarter net income of $199 million, or 47 cents a share, down from $347 million, or 82 cents a share, a year earlier. The company's results were boosted by a tax benefit of $38 million. A year earlier, its tax benefit was $239 million. Excluding the tax gain and charges for stock-based compensation, Amazon reported income of $177 million. See full story. Amazon also said it expects to generate sales between $9.85 billion and $10.45 billion this year, in line with analysts' estimates. Bear Stearns analyst Robert Peck lowered his stock price target to $47 from $50 but reiterated his outperform rating, saying that while Amazon's outlook was disappointing, it could be conservative. Among the sector's bellwethers, Google Inc. (GOOG) shares fell 1.2%, Yahoo Inc. (AMZN) shares fell nearly 1% and eBay Inc. (EBAY) shares fell 2.1%. Other Net stocks on the move included Liveperson Inc. (LPSN), which saw its shares gain 10%. Scott Banerjee is a reporter for MarketWatch in San Francisco.