Earnings Prompt Net Stock Rise
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A slew of earnings reports, most beating estimates, sent Internet issues higher on Wednesday. The positive reports drove many analysts to upgrade estimates and price targets for upcoming quarters.
internet.com's Internet Stock Index was up 16.92, or 1.98 percent, to 872.47, the Nasdaq Composite gained 20.48 to 4151.29 and the Dow Jones industrial average lost 71.36 to 11489.36.
Shares of Netopia Inc. (NTPA) lost 2-1/4 to 57-7/8. The DSL equipment provider reported a loss of $0.01 per share, five cents narrower than analysts had expected. Revenues rose 106 percent to $16.3 million. Robertson Stephens reiterated its "buy" rating.
One of the biggest losers was high-speed chip maker Broadcom Corp. (BRCM) , off 10-7/16 to 318-1/16. Investors punished the stock even though the company reported earnings of 31 cents a share, 4 cents better than analysts' expectations. It also set a 2-for-1 stock split.
A number of firms revised their targets on the stock, including Salomon Smith Barney, which raised its price target by $100 to $400 and maintained a "buy" rating. Goldman Sachs upped its fiscal 2000 earnings estimate to $1.43 from $1.25 and Dain Rauscher Wessels upped its target by $130 to $430 and maintained its "buy" rating.
Digital Island Inc. (ISLD) finished down 1 to 81 after trading as high as 86-11/16. The computer network provider purchased privately-held Live On Line Inc. for $70 million in cash and stock.
E*Trade Group Inc. (EGRP) fell 1-3/4 to 26-3/16. The online broker reported a first-quarter net loss of 2 cents a share. On an operating basis, the company lost 15 cents a share, beating estimates calling for a 21-cent loss. Revenue grew 42 percent to $246 million. The company also signed up 330,000 new accounts.