RealTime IT News

Earnings Storm Passes, But The Sun Isn't Shining Yet

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The freefall in Internet stocks that accompanied the release of Q2 earnings reports over the past several weeks appears to have ended, but that doesn't mean 'Net tickers are poised for a comeback.

The fact is that the vast majority of Internet companies reported losses in the recent quarter; not exactly the foundation upon which to build a rally. Also, though investor fears of interest-rate hikes may have eased, they certainly have not dissipated.

Finally, it's August, which means much of Wall Street is in the Hamptons, Europe or Martha's Vineyard. While there may be a bit of back and forth in the remaining days of August, look for 'Net tickers to be pretty much where they are now come Labor Day. Best bets for advances are the infrastructure players (Speed/Bandwidth posted the only strong week), wireless companies and the Security sector, which has shown more stability than all other groups in the year to date.

                          Ave. 7-Day
                           % Change

Speed/Bandwidth              +9.1%
Performance Software         +4.3% 
Security                     +2.5%
Advertising/Marketing        -0.3% 
Content/Communities          -0.8%
ISPs/Access Providers        -1.1%
Search/Portals               -1.2%  
Internet Services            -1.2%
E-commerce Enablers          -1.2%
E-tailers                    -2.3%
Wireless                     -2.5%
Consultants/Designers        -3.4%
Financial Services           -3.6%

TOP 10 GAINERS                 7-Day % Gain         Category

PNVN   PNV                       52.3%          ISPs/Access Providers
SWCM   Software.com              44.8%          Performance Software
EPAY   Bottomline                44.6%          E-Commerce Enablers
PKSI   Primus Knowledge          41.0%          Performance Software
RAMP   Ramp Networks             39.5%          Speed/Bandwidth
SNOW   Snowball.com              39.4%          Content/Communities
GDEN   Garden.com                37.9%          E-tailers
NTGX   net.Genesis               37.5%          Performance Software
ETIN   Etinuum                   32.0%          Internet Services
JNPR   Juniper Networks          30.5%          Speed/Bandwidth

TOP 10 LOSERS                  7-Day % Loss         Category
LOAX   Log On America           -28.4%          ISPs/Access Providers
WBSN   Websense                 -28.3%          Performance Software
HSTM   HealthStream             -26.8%          Content/Communities
IPET   Pets.com                 -26.1%          E-tailers
PFSW   PFSweb                   -26.0%          E-Commerce Enablers
KOOP   drkoop.com               -25.7%          Content/Communities
DTHK   DigitalThink             -25.7%          Content/Communities
DRTN   Data Return              -24.6%          Internet Services
ITRA   Intraware                -24.6%          E-Commerce Enablers
VATA   Versata                  -23.2%          Performance Software

                          WIRELESS PRODUCTS/SERVICES

                       8/9    7-Day   7-Day  1-Month   YTD    Market
       Company       $Close  $Change %Change %Change           Cap
HAND  Handspring      35.31    5.75   19.5%   21.2%    N/A      4.4B
PHCM  Phone.com       91.13    9.88   12.2%   19.0%  -21.6%     7.2B
PRTH  Parthus         28.00    1.38    5.2%    6.2%    N/A      1.4B
MCOM  Metricom        34.19    1.44    4.4%   22.9%  -56.6%     1.0B
INSP  InfoSpace       31.38   -0.06   -0.2%