Earnings Worry Sweeps Over Internets
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Earnings season jitters continued to take hold as a number of companies begin reporting. AOL's numbers were positive, but a number of analysts have conflicting views on the proposed merger with Time Warner.
internet.com's Internet Stock Index was up 5.41, or 0.62 percent, to 877.88, the Nasdaq Composite gained 38.21 to 4189.50 and the Dow Jones industrial average fell 138.06 to 11351.30.
Analysts came out with mixed actions following the results. Robertson Stephens and Warburg Dillon Read reiterated their "strong buy" while Dain Rauscher cut the firm to "buy" from "strong buy." Also, Merrill Lynch said Thursday it still sees the AOL, Time Warner (TWX) merger as a "strategic positive."
Extreme Networks (EXTR) was up 15-5/8 to 93-3/4. The networking equipment maker reported fiscal second-quarter earnings of 11 cents, 2 cents higher than forecasts.
BackWeb Technologies Ltd. (BWEB) gained 2-9/16 to 42-13/16. Streaming media giant Real Networks Inc. (RNWK) Thursday invested $15 million in the firm. It also announced plans to use BackWeb software to deliver music to its users. Shares of RNWK were unchanged at 153-13/16.
Redback Networks Inc. (RBAK) dropped 5-7/8 to 200-1/8. The network equipment maker beat earnings forecasts, although speculation was investors were displeased after the company did not declare a stock split.