Dog Days For E-Commerce

The folks at stamps.com didn't look nervous during the big selloff Tuesday. But like most Nasdaq traded e-companies, the Santa Monica based online postage provider has been on a stock market roller coaster—up to 98 1/2 dollars a share in the past year, but closing Tuesday at 14 and 3/4.

As CBS News Correspondent Sandra Hughes reports, the challenges facing stamps.com are typical of those facing dozens of companies that have powered the high-technology stock surge.

It's becoming glaringly obvious that just putting an "e" in front of your business name doesn't mean success.

In fact, stamps.com CEO John Payne said he's confident his company will be left standing when the roller coaster ride ends because of what's unique about his firm: they have a whopping $350 million in the bank.

"Were firing on all cylinders, we have cash in the bank all systems are go," said Payne.

A big bank account can insulate an e-company from the hard times facing many others, whose stock prices have dropped so low, they're losing employees and venture capital.

"Its no longer just good enough to have an interesting business plan and an interesting product," said Dave Callaway of CBS MarketWatch."You have to be able to show Wall Street that you're going to make money and in many cases now you have to be able to show them when you're going to make money."

Still, many former corporate climbers keep taking the "dot-com" plunge in return for the potential riches of stock options.

Stamps.com legal counsel Mike Zuercher, for one, came from a big California law firm. And he's sure enough to stay.

"We're not nervous," he said. "I wouldn’t say everyone’s mulling around saying this is the end of the world, it’s just, 'Wow can you believe what’s happening with the markets?'"