RealTime IT News

ISDEX May Find Boost From Internet Revenue Study

The big news today is the $301 billion the Internet produced in revenue last year, about 1 percent of total U.S. GDP. The revenue came from Web sales of books, music, toys, etc. $58 billion of the total was stock trading and travel, according to the study from the University of Texas and Cisco.

As the news spreads today it may have a positive effect on the Internet sector if investors can get over interest rate concerns (which they may not).

For the period May 26 through June 9 ISDEX (the Internet Stock Index) went sideways. A new addition to ISDEX topped the list of percent gainers, StarMedia (NASDAQ:STRM), up 42% from May 26 and 150% from its $15 IPO price.

For those north (or west or east) of the border unfamiliar with STRM, it provides Web search and guide services across Latin. I think StarMedia has the chance to be the Yahoo! of Latin America, although Yahoo! just inked a marketing deal with Fox's Latin TV division for the region.

Other threats include AOL/Cisneros Group's adventuras en America del Sur, if you can excuse my Spanglish.

Let's go to the stats:

ISDEX ®   09-Jun-99 % change Point change % change
The Internet Stock Index   close from from from
www.isdex.com     26-May-99 26-May-99 31-Dec-98
          or 1999 IPO
ISDEX   505.06 -0.03% -0.14 49.9%
NASDAQ   2,519.35 3.8% 92.17 14.9%
DJIA   10,690.29 -0.1% -11.87 16.4%
           
StarMedia STRM $ 37.50 42% $11.00 150%
ISS Group ISSX $ 29.63 27% $6.38 8%
Beyond.com BYND $ 23.69 25% $4.75 14%
Exodus EXDS $ 91.19 24% $17.75 184%
Security First Technologies SONE $ 38.88 21% $6.75 155%
Verio VRIO $ 61.38 20% $10.25 174%
Infospace.com INSP $ 46.25 20% $7.56 143%
Broadvision BVSN $ 58.25 19% $9.38 82%
CheckPoint Software CHKPF $ 52.19 19% $8.25 14%
Verisign VRSN $ 58.63 11% $5.75 98%
24/7 Media TFSM $ 31.25 11% $3.00 12%
Open Market OMKT $ 13.25 10% $1.25 13%
Infoseek SEEK $ 46.44 10% $4.31 -6%
Concentric CNCX $ 35.06 10% $3.06 111%
Broadcom BRCM $ 108.75 9% $9.19 80%
Go2Net GNET $ 107.88 7% $6.63 510%
Prodigy PRGY $ 24.50 7% $1.50 63%
Doubleclick DCLK $ 96.13 7% $5.88 332%
Broadcast.com BCST $ 111.50 6% $5.94 192%
eBay EBAY $ 183.00 5% $8.69 128%
CMG Info CMGI $ 105.25 5% $4.63 295%
Xoom.com XMCM $ 48.88 5% $2.13 48%
Cisco CSCO $ 113.75 4% $4.63 23%
Yahoo! YHOO $ 146.38 4% $5.50 24%
USWeb USWB $ 25.88 3% $0.81 -2%
VocalTec VOCLF $ 10.81 3% $0.31 -4%
Egghead.com EGGS $ 11.00 3% $0.31 -47%
CDnow CDNW $ 17.75 2% $0.31 -1%
Earthlink Network ELNK $ 50.25 0% $0.25 -12%
Inktomi INKT $ 98.25 0% $0.25 52%
Preview Travel PTVL $ 17.06 0% $0.00 -7%
CNET CNET $ 52.38 0% -$0.16 307%
Network Solutions NSOL $ 60.25 -1% -$0.50 -8%
PSINet PSIX $ 43.63 -2% -$0.75 109%
Network Associates NETA $ 14.25 -2% -$0.25 -78%
RealNetworks RNWK $ 68.50 -2% -$1.69 282%
Mindspring MSPG $ 71.78 -2% -$1.78 18%
Sportsline USA SPLN $ 33.63 -3% -$1.13 116%
CyberCash CYCH $ 12.81 -4% -$0.56 -15%
Amazon.Com AMZN $ 114.00 -6% -$6.94 6%
Ticketmaster-CitySearch TMCS $ 26.00 -6% -$1.75 -54%
Onsale ONSL $ 17.19 -6% -$1.19 -57%
Axent AXNT $ 11.88 -7% -$0.88 -61%
America Online AOL $ 111.00 -8% -$9.31 43%
Lycos LCOS $ 93.00 -9% -$9.00 67%
E*TRADE EGRP $ 40.50 -9% -$4.25 246%
Security Dynamics SDTI $ 17.00 -11% -$2.06 -26%
Cyberian Outpost COOL $ 10.69 -14% -$1.69 -61%
iVillage IVIL $ 41.19 -16% -$7.81 72%
@Home Network ATHM $ 96.88 -22% -$27.75 30%

Among the news and moves:

  • 99.06.08 - Infoseek (NASDAQ:SEEK) rockets 13% against the market downturn on news that Disney may acquire the 53% of SEEK it doesn't own. Disney holds a warrant that allows it to acquire a majority but this move seems to indicate 100%. I think Disney should roll it up with Disney's entire Internet basket and consolidate the brand under go.com (something I suggested when Disney first did the Infoseek investment last year).

    Also, with Disney Internet leader Jake Weinbaum leaving, some key Infoseek execs already gone, it may be better to have one captain and why not Mickey Mouse, or Steamboat Willie. You know what Wall Street really wants to see from Disney? Some imagineering with its Web efforts instead of the me-too portal model it has followed.

  • 99.06.08 - BackWeb (NASDAQ:BWEB) debuts with its IPO Wednesday, up 64% from pricing to $19 11/16 per share. BackWeb's corporate software management services and information distribution provide key data flow to large corporations. A rival on the automated software distribution is Marimba (NASDAQ:MRBA), although BackWeb to me represents a more diverse data distribution play.

  • 99.06.07 - Internet Security Systems (NASDAQ:ISSX) is upgraded by BancBoston Robby Stephens to "buy" to take advantage of what it calls a recent selloff. I think the whole Internet security software sector looks sold off and worth another look. CheckPoint (NASDAQ:CHKP) and Security Dynamics (NASDAQ:SDTI) for two.

  • 99.06.04 - The most significant news is a Federal Court in Oregon ruling that AT&T/TCI cable lines carrying Internet traffic must be opened up to non-cable companies, a boon to ISPs such as AOL (NYSE:AOL), EarthLink (NASDAQ:ELNK) and MindSpring (NASDAQ:MSPG), all stocks on the up this week.

    Shares of cable Internet stocks fall with @Home (NASDAQ:ATHM) hit the hardest down 10% to $94.50 per share. AT&T (acquiring TCI, a majority owner of @Home) will inevitably fight the ruling in appellate court.

  • 99.06.03 - Xoom.com (NASDAQ:XMCM) agrees to acquire MightyMail for $25 million stock. MightyMail email helps companies create branded email products.

  • 99.06.03 - E*TRADE (NASDAQ:EGRP) makes s $1.8 billion stock offer for Web-based bank Telebanc. Investors react unfavorably, driving down EGRP 11.66% to $39 5/16 per share. E*TRADE goes for girth, same as its land-based banking rivals. But it hasn't solidified enough lead in online investing to go after other areas yet in my view. In terms of stock trades I believe E*TRADE is fourth on the Web.


    Introducing Internet StockTracker, the new weekly e-mail newsletter from internet.com LLC. Every Friday internet.com will deliver to your e-mail in-box the latest performance data on individual Internet companies and their competitors. Internet StockTracker will deliver to you all the statistics you need to assess the week's activity. Subscribe today and receive the Charter Rate of $127 -- a savings of $100 off the regular subscription price! e-newsletters