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RealTime IT News

CMGI, AdForce Deal Livens Up Dull Day

A major deal in the Internet sector was about the only thing investors could get excited about Monday during a light trading session.

Monday marked the lightest trading day of the year on the NYSE and the Nasdaq Composite came within one point of setting a record high.

internet.com's Internet Stock Index rose 1.60, or .32 percent, to 496.99, the Nasdaq Composite was up 15.97 to 2,885.59 and the Dow Jones industrial average inched-up 5.39 to 10,809.02.

CMGI (CMGI) announced that it will purchase AdForce (ADFC) , which develops ad serving and profiling technology. The price is about $500 million in CMGI stock. AdForce was up 3/4 to 20-1/4 and CMGI rose 3-7/16 to 83-7/16.

Commerce One (CMRC ) surged 24-13/16 to 124-7/8. Mark Verbeck, an analyst with U.S. Bancorp Piper Jaffray, made positive comments on the business-to-business services provider.

As expected, FairMarket, Microsoft Corp. (MSFT) , Excite@Home Corp. (ATHM) and Ticketmaster Online-CitySearch (TMCS) officially announced a pact to create a new online auction service.

This was bad news for the shares of eBay Inc. (EBAY) . The stock fell 5 to 136 after slumping as low as 130-5/16.

Two leaders were doing well on analyst upgrades. Yahoo! Inc. (YHOO) gained 5-1/4 to 168-3/8 and Priceline.com Inc. (PCLN) leaped 5-15/16 to 64-3/16.

Sara Zeilstra of Warburg Dillon Read Monday raised her rating on Priceline to a "strong buy" from a "buy" and set a $125 12-month price target. Also, US Bancorp Piper Jaffray reiterated its "strong buy" on Yahoo!.

As for the Net leaders, BroadVision Corp. (BVSN) was up 10-7/8 to 127-5/8, RealNetworks (RNWK) rose 7-1/8 to 100-13/16 and Ariba (ARBA) increased 3-1/8 to 134-1/2.

CyberSource (CYBS) was up 3-1/2 to 38-1/4 . Kevin Yen of Adams, Harkness & Hill, initiated coverage of CyberSource with an "accumulate" rating and a 12-month price target of $45.

Razorfish Inc. (RAZF ) had jumped 6-3/4 to 37-5/8. The Internet design company was raised to a "buy" from "outperform" by Lehman Brothers.

VeriSign Inc. (VRSN) was up 5-3/4 to 116 after Credit Suisse First Boston's Todd Raker initiated coverage with a "buy" rating. He considers the company to be the clear leader in the digital certificate market.

Phone.com (PHCM) was up 7-3/16 to 142-15/16. The company signed a distribution deal with network operator Southern LINC.

On the IPO front, the online wedding company The Knot filed to go public. The lead underwriter is CS First Boston.


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