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Qwest stock dropped below $6 for the first time in nearly two years Wednesday, a day after larger peer AT&T told investors it is seeing a slowdown in the consumer wire-line and Internet businesses.

Shares of Denver-based Qwest dropped 20 cents, or 3 percent, to close at $5.92, the lowest close since the stock ended at $5.84 on Feb. 15, 2006. The stock tumbled nearly 11 percent during intraday trading before a late rally Wednesday.

Other land-line carriers also took hits over fears that their residential-phone customer base — already on the downswing amid competition from cable and cellphone companies — may further erode because of the economic slowdown. AT&T stock dropped 16 cents to $39, Embarq fell 51 cents to $46.54, and CenturyTel plummeted $2.91 to $36.41.

"I think the markets in general are worried about a recession," said Donna Jaegers, an analyst with Janco Partners.

Qwest stock hammered in down market

The telecommunications sector has taken a beating from the markets so far this year, and Qwest has been among the hardest hit.

The Denver company's stock, which fell 11 cents to close at $5.56 Thursday, is down 20 percent for the year and is trading at a two-year low.

The Dow Jones Telecommunications Titans 30 Index, which includes Qwest and 29 other large-cap telecom stocks, is down 5.8 percent for 2008.

Soleil Securities Group upgraded Qwest stock this week, saying it believes the shares are undervalued despite concerns about the company's high debt load and stalling revenue.

"Is it undervalued? Yeah, in the long term," Janco Partners analyst Donna Jaegers said Thursday. "But could it go lower? Yeah, and I think it will."

Many U.S. telecom stocks were hammered last week after industry giant AT&T told investors it was seeing a decline in its consumer home-phone and Internet businesses.

Overstock.com (OSTK) Announces $20M Stock Buyback

Overstock.com, Inc. (Nasdaq: OSTK) today announced that its Board of Directors has authorized a $20 million two-year repurchase program which will allow Overstock.com to buyback shares of its common stock and/or its Convertible Senior Notes. The shares may be repurchased from time to time in open market transactions or otherwise, subject to market conditions and other factors, including blackout periods imposed by Overstock.com, during which the Company prohibits its insiders and employees from trading in the Company's stock. Overstock.com, Inc. operates as an online retailer that offer discount brand name merchandise for sale primarily over the Internet.