IPOs Get Starring Roles As Net Stocks Fly Higher
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Internet IPOs garnered much attention Wednesday in a session that saw the Internet sector stage a strong turnaround to recover from the sell-off earlier in the week.
internet.com's Internet Stock Index jumped 18.73, or 3.95 percent, to 492.38, the Nasdaq Composite climbed 26.51 to 2,705.84 and the Dow Jones industrial average slumped 6.97 to 10,972.07.
The online drug retailer's shareholders include Amazon.com, which has a 44 percent stake, and venture capital firm Kleiner Perkins Caufield & Byers, which owns 28.7 percent of the company.
It wasn't such a good day for Quokka Sports, providers of sports entertainment on the Internet. Quokka (QKKA) slumped 5/8 to 11-3/8. The company sold 5 million shares at $12 each.
Analysts attributed the company's rough reception to the fact that most consumers still don't have the bandwidth necessary to take advantage of the array of options the company offers.
All of the sector's leaders posted healthy gains, including America Online Inc. (AOL) up 4-5/16 to 102-1/2, Yahoo! Inc. (YHOO)rose 11-11/16 to 143, CMGI Inc. (CMGI) up 7-7/8 to 98-1/8, Amazon.com Corp. (AMZN) gained 4-3/4 to 105-3/4 and eBay Inc. (EBAY) jumped 5-3/8 to 104-15/16.
Shares of Infospace (INSP) slumped 4-3/4 to 50-7/16. The company reported an operating profit of $409,000, or 1 cent a share. That's substantially higher than analyst forecasts calling for a 4-cent loss.
Mindspring Enterprises Inc. (MSPG) dropped 4-3/4 to 35-1/2. The company on Tuesday reported quarterly pro-forma earnings of 11 cents a share, beating analyst estimates by 2 cents. However, the ISP warned it will be spending more on advertising and marketing which will cut into profits.
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