Pioneering internet bookseller Amazon.com watched its value plunge by nearly a quarter on Friday.

The fall in its share price meant it was worth half what it was in December last year.

Amazon.com denied it would run out of money like failed web fashion retailer Boo.com.

Meanwhile, shares in Dixons-owned internet service provider Freeserve plunged by 20 per cent as it confirmed it had ended merger talks with German rival T-Online.

City accountants have warned that of the 28 internet stocks listed on the London Stock Exchange, up to 25 would run out of money within 15 months.