Q2 Reports Could Make Or Break Many 'Net Players
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Until Wednesday, it wasn't shaping up as a very good week for Internet stocks. But Wednesday arrived in a big way, bringing with it huge one-day gains for a number of stocks that otherwise had been down since July 5.
The main catalyst for the sharp upturn was 1) Indications that interest rates won't be raised later this month; 2) Yahoo's stellar earnings; 3) General optimism over upcoming quarterly reports; 4) All or some of the above. A colleague of mine thinks Yahoo set up the market by downplaying Q2 expectations, thus getting a bounce of relief when it beat analysts' earnings estimates and doubled revenue. He also thinks most ad-supported sites will exceed projected numbers for Q2, perhaps sparking a summer run-up for stocks many investors have been left for dead.
Some of these companies better hope that's what happens, because I believe this is an especially critical earnings season. A number of 'Net stocks have seen rallies that began in mid-April fizzle out, leaving them back or even below the lows they reached when the market melted down in March.
With investors in the middle of a serious period of sorting winners from losers, it behooves battered 'Net tickers to show signs of life now. Otherwise, they may find themselves permanently placed in the loser pile. Of course, many of them fully deserve that assignation, but for those on the cusp, the window of opportunity is now. The next three weeks will be extremely important.
NOTE: Market Cap figures are in millions of dollars unless otherwise indicated. Float figures are in millions of shares, also unless otherwise indicated.
PERFORMANCE BY SECTOR Ave. 7-Day % Change Speed/Bandwidth +7.7% Consultants/Designers +6.1% Content/Communities +4.1% Security +3.3% Wireless +3.2% Performance Software +3.2% E-commerce Enablers +2.3% Internet Services +1.5% E-tailers -1.1% Search/Portals -1.7% Financial Services -2.0% ISPs/Access Providers -2.2% Advertising/Marketing -3.5% TOP 10 GAINERS 7-Day % Gain Category VMDC VantageMed 80.0% Performance Software NTVN Netivation.Com 75.0% Content/Communities IWAV interWAVE 71.5% Wireless CKCM Click Commerce 55.2% E-commerce Enablers AHWY audiohighway.com 50.0% E-tailers SONS Sonus Networks 41.8% Speed/Bandwidth DTHK DigitalThink 41.4% Content/Communities ATON Alteon WebSystems 39.6% Speed/Bandwidth ZDZ ZDNet 37.7% Content/Communities INFT Inforte 37.5% Consultants/Designers TOP 10 LOSERS 7-Day % Loss Category EBKR Ebookers.com -35.3% E-tailers PLRX PlanetRx.com -30.4% E-tailers HCEN HealthCentral.com -28.6% Content/Communities FUSN Fusion Networks -27.4% Internet Services BVSN BroadVision -27.1% E-commerce Enablers EGGS Egghead.com -25.0% E-tailers MDLI MedicaLogic -23.8% Internet Services WAVO WAVO Corporation -23.1% Performance Software FAIM FairMarket -22.2% E-commerce Enablers ENTU Entrust Technologies -22.2% Security ******************************************************************** WIRELESS 7/12 7-Day 7-Day 1-Month Market Float Company $Close $Change %Change %Ch