Net Stocks Extend Losing Streak
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Internet issues were pushed lower for the second straight day in wake of skepticle future growth forecasts at Cisco Systems Inc. and profit taking by investors. Still, a series of analyst reports and deal makings brought some Internet stocks higher.
internet.com's Internet Stock Index lost 9.79, or 1.22 percent, to 795.18, the Nasdaq Composite jumped 50.27 to 3621.93 and the Dow Jones industrial average gained 65.15 to 11225.32.
eCollege.com (ECLG) had a successful IPO debut, rising 3-1/4 to 14-1/4. The company issued 5 million shares at $11 per share. Banc of America Securities LLC acted as managing underwriter for the offering. eCollege is a provider of technology and services that enable colleges and universities to offer an online environment for distance and on-campus learning.
Go2Net Inc. (GNET) surged 11-3/4 higher to 99-1/16. The leading portal signed a three-year licensing deal to bring Hasbro's (HAS) games to the Web site, games.com. Hasbro and Go2Net will each share in the revenue generated from the sale of advertising and sponsorship. Go2Net will also receive fees for Games.com e-commerce transactions originating from Go2Net's portal and properties.
"RealNetworks has the potential to become one of the top five digital media portals, in our view. RNWK ranks among the top 15 content providers in terms of reach and has over 90 million registered users- on par with leading portals such as Yahoo!" wrote Blodget and Ghachem in a note to clients.
Cisco Systems Inc. (CSCO) dropped 2-1/16 to 95-7/8 after slumping as low as 92-7/8 earlier in the session. The maker of networking equipment said in a regulatory filing "sales growth in future quarters may slow." Immediately after the filing was released, Cisco cautioned the warning wasn't necessarily cause for alarm and many analysts agreed, saying investors had initially overreacted.
CacheFlow Inc. (CFLO) plunged 16-1/2 to 125. The company, which makes equipment to optimize Web page delivery, reportd a fiscal second-quarter loss of $2.35 a share compared to 62 cents a year ago. Revenues jumped 400 percent to