Strong Earnings Minimize Net Losses
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Technology shares were running into trouble at midday Wednesday as investors showed concern over quarterly earnings. However, strong results from two Internet leaders were cushioning the impact on that sector.
At 11:45 a.m. Eastern, internet.com's Internet Stock Index was off 5.08, or .58 percent, to 866.94, the Nasdaq Composite had lost 42.49 to 4,124.92 and the Dow Jones industrial average was up 35.67 to 11,065.56.
The good news led Robertson Stephens to reiterate its "buy" rating. Donaldson Lufkin Jenrette also reiterated its "buy" and said the stock should be a core part of an Internet investor's portfolio.
Also, the company late Tuesday purchased Internet software firm NetZip and announced a 2-for-1 stock split.
That prompted DLJ to raise its six to 12-month price target to $280 from $150.
Losers included Yahoo! Inc. (YHOO), off 13-1/8 to 332-7/16, Verisign Inc. (VRSN) was off 5-7/8 to 191, Infospace.com Inc. (INSP) was down 9 to 140-1/2 and Check Point Software Technologies (CHKP) had lost 3-3/8 to 276.
Commerce One Inc. (CMRC) was off 11-1/8 to 188-1/2. The electronic commerce software provider reported a fourth-quarter loss of 40 cents a share, almost double the year-ago figure. Analysts had only forecast a 15-cent loss.
F5 Networks (FFIV) had plunged 12-1/2 to 121, despite reporting better-than-expected quarterly results. The company posted a fiscal first-quarter profit of $4.2 million, or 18 cents a share -- 4 cents better than expected.
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