Internet Stocks See Rough Finish
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After falling this morning, Internet shares worsened by the end of the day - reeling from the bad news of the producer price index. The index had the biggest gain in nine years, indicating a pick-up in inflation.
internet.com's Internet Stock Index fell 22.49, or 4.10 percent, to 526.14, the Nasdaq Composite had dove 75.25 to 2,731.59 and the Dow Jones industrial average had plunged 251.70 to 10,034.91.
Theglobe.com (TGLO) was hit hard, plunging 2-9/16 to 11-1/16. The company warned investors Friday that two new products will be delayed, causing third-quarter sales to fall below expectations. However, officials said earnings are expected to come in at analysts' expectations of a 34-cent loss. Bear Stearns downgraded the stock from "attractive" to "neutral."
Broadcom Corp. (BRCM) was up 1-13/16 to 118-5/8. The company reported it earned 26 cents a share, which was 6 cents better than First Call estimates. Morgan Stanley Friday upped its 1999 earnings per share estimates for Broadcom to 86 cents from 75. Also, CS First Boston increased its 1999 earnings estimates to 86 cents and forecast the company will earn $1.24 in fiscal year 2000. Merrill Lynch also put a $180 price target on the stock for the next year.
DoubleClick Inc. (DCLK) had fallen 14 to 113-1/2. The company reported a third-quarter loss of $5.4 million, or 13 cents a share, beating analysts' expectations of a 14-cent loss. Although, there have been concerns about pressure on pricing for the company's DART technology.
Most leaders were down, with America Online Inc. (AOL) off 5-3/4 to 109-1/4, MP3.com (MPPP) had fallen 3-11/16 to 39-3/4, Ariba Inc. (ARBA) was down 1-1/2 to 162, Excite@Home (ATHM) was off 2-5/16 to 40-13/16, CMGI Inc. (CMGI) was down 6-7/16 to 97-13/16, Amazon.com (AMZN) had slipped 4-17/32 to 75-1/16 and Yahoo! Inc. (YHOO) was off 3-13/16 to 169-9/16.
Internet Initiative Japan (IIJI) had fallen 3-11/16 to 48-11/16. The Japanese Internet provider said Friday second-quarter revenues are expected to beat estimates. However, its second-quarter foreign exchange loss is expected to climb as a result of a stronger-than-expected yen.
Starmedia (STRM) ended off 3-3/16 to 32. The company Friday announced plans for a secondary offering of 6 million shares which have been priced at $34 each. Goldman Sachs will be the lead underwriter.
It wasn't all red ink, however. Leaders in the plus column included Sun Microsystems Inc. (SUNW) up 3-5/32 to 92-9/16. The workstation maker said first-quarter net income rose to 33 cents a share compared to 14 cents a share a year ago. Operating earnings rose to 39 cents, beating analysts' expectations of a 33-cent profit.
On the IPO front, Cysive Inc. (CYSV) surged 21-5/8 to 38-5/8. The company, which provides high-end e-business solutions, issued 3.35 million shares at $17, raising $56.95 million. The lead underwriter was Lehman Brothers.
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