Internet stocks staged a dramatic turnaround Tuesday to end higher despite a rocky start.
At noon, internet.com's Internet Stock Index was up only 1.04, but by the market's
close, it had recovered last week's momentum. Leading issues higher were
several analyst upgrades and optimism on upcoming earnings reports.
internet.com's Internet Stock Index closed up 17.78, or 2.08 percent,
to 872.02, the Nasdaq Composite rose 71.33 to 4167.41 and the Dow Jones
industrial average matured 21.72 to 11029.89.
rose 4-1/8 to 22-3/4. Kaufman Brothers initiated coverage with a "buy"
rating and $37 price target.
rocketed 25-15/16 higher to 89. Investors applauded news that its
fourth-quarter loss shrank to 57 cents a share. That trounced analyst
expectations of an 80-cent loss. DLJ raised its 6-12 month price target on
the guide driven Web destination from $100 to $150.
Shares of uBid (UBID)
slipped 5/16 to 25-7/8. Reporter@Large Luke Fronefield
Broadvision Inc. (BVSN)
was up 7-9/16 to 156-9/16 and Checkpoint Software Technology (CHKP)
gained 23-49/64 to 279-3/8.
On the losing side was Ariba Inc. (ARBA)
off 4-7/16 to 177, Inktomi Corp. (INKT)
down 6-7/16 to 105-9/16 and PSINet Inc.
off 8-1/4 to 92-3/4.
Strong ISDEX gainers included S1 Corp. (SONE), up 5-7/8 to 98-7/8. Lehman Brothers initiated coverage on the online financial services company with a "buy," setting a $140 target.
Ask Jeeves Inc. (ASKJ)
gained 5 to 104. The Internet search firm Tuesday bought Direct Hit
Technologies in a stock deal worth almost $507 million.
Healtheon/WebMD Corp. (HLTH)
added 3-3/8 to 68-1/2. The company Tuesday formed a $100 partnership with
online medical company Medtronic.
Foundry Networks Inc. (FDRY)
rose 8-1/2 to 152. The maker of networking equipment Tuesday reported a
fourth-quarter profit of 11 cents, 4 cents higher than analysts were
Goto.com Inc. (GOTO)
lost 2-1/6 to 84. The Internet directory Tuesday was named by Microsoft Corp. (MSFT)
as a premier search provider.
Engage Technologies Inc. (ENGA)
jumped 8-3/4 to 119. CS First Boston started coverage with a "buy," setting
a $170 price target.