Autobytel.com Stock Decelerates After a Zippy Start

In its first full day of trading Monday, the stock of Internet car retailer Autobytel.com Inc. slumped more than 12%, even as the rest of the market generally moved up and the Dow Jones industrial average closed above 10,000 for the first time.

The Irvine-based company’s shares, which surged 75% after debuting midway through Friday’s session, dropped $4.88 on Monday to close at $35.38.

Its competitor, Santa Clara-based Autoweb.com Inc., which went public a week ago, has seen its stock fall precipitously since surging from from $14 to $40 on its first day. On Monday, the shares dropped 9%, or $3, to $29.75.

The companies make money by supplying information to potential car buyers and referring them to auto dealers, who either pay to be part of the network or pay for each customer referral.

Both Autobytel and Autoweb plan on expanding their information offerings to include a large range of automobile categories, including mechanical servicing and insurance. (Jonathan Gaw)