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RealTime IT News

AOL, Inktomi Lead Parade Of Net Stocks Beating Estimates

America Online and Inktomi were among Internet stocks reporting better-than-expected earnings after the close on Thursday. Sun Microsystems also beat earnings estimates and traded 5% higher in after-hours trading.

Traders bid stocks higher during the day after Fed Chairman Alan Greenspan said demand may be moving more in line with growth, signaling that the end of the Fed's rate hike cycle may be near. The ISDEX bolted 41 to 830, and the Nasdaq gained 128 to 4184. The S&P 500 climbed 13 to 1495 and the Dow gained 147 to 10,843. Volume rose more than 10%, to 1.06 billion shares on the NYSE and 1.7 billion on the Nasdaq. Advancing issues led 16 to 11 on the NYSE and 22 to 17 on the Nasdaq. For earnings reports, visit our earnings calendar and reported earnings.

America Online announced fourth-quarter earnings of 13 cents a share, 2 cents better than expected. Revenues came in at the lower end of expectations at $1.93 billion, but advertising revenues were strong. The stock rose 2 3/8 to 61 3/4 ahead of the report, but slipped to 59 in after-hours trading.

Inktomi reported third-quarter earnings of 4 cents a share, 2 cents ahead of expectations. The stock gained 6 3/8 to 129 7/16 in regular trading, and traded down slightly to 129 after hours.

Alteon Websystems crushed earnings estimates, reporting fourth-quarter earnings of 17 cents a share, 14 cents better than expected. Alteon also said it will buy Pharsalia for $221 million in stock. Alteon gained 17 3/16 to 134 5/16 in regular trading and added another $10 after hours.

Phone.com also beat estimates handily, reporting a fourth-quarter loss of 10 cents a share, 9 cents better than expected. The stock gained 3 11/16 to 88 3/8 in regular trading and rose to 92 after hours.

BroadVision rose 4 9/16 to 45 3/8 in regular trading, but slipped to 44 in after-hours trading after reporting earnings of 4 cents a share, two cents better than expected. CNET reported second-quarter earnings of 3 cents a share, 2 cents better than expected. The stock rose 2 11/16 to 32 3/8 in regular trading and was unchanged after hours.

Media Metrix reported a second quarter loss of 10 cents a share, a penny better than estimates. The stock rose 11/32 to 39 11/32 ahead of the report but did not trade after hours. Autoweb posted a second-quarter loss of 13 cents, four cents better than expected. The stock traded slightly lower after rising 9/32 to 2 19/32 ahead of the report.

Handspring reported a fourth-quarter loss of 13 cents a share, 6 cents better than expected. The stock rose to 41 after the report, after rising 11/32 to 39 11/32 in regular trading. Scient announced earnings of 6 cents a share, a penny ahead of estimates. The stock, which rose 2 1/16 to 62 7/16 ahead of the report, slipped a point after hours.

Unlike the previous two days, companies that beat earnings estimates after the bell on Wednesday actually rose in Thursday's trading session.

One exception was Excite@Home , which declined 1 3/16 to 17 13/16. The company reported a second-quarter loss of 11 cents a share, a penny better than expected, but revenue came in lighter than expected. Merrill Lynch downgraded the stock from Buy to Accumulate.

Exodus Communications rose 7 11/16 to 58 1/2 after reporting a second-quarter loss of 10 cents, 2 cents better than expected, and revenues also beat estimates. Chase H&Q upgraded the stock from Buy to Strong Buy.

PurchasePro.com gained 7 3/16 to 49 11/16 after reporting a second-quarter loss of 22 cents a share, 8 cents better than expect