Yahoo! Buoys Nets As Acquisitions Sweep Through Sector
Page 1 of 1
Internet stocks were faring well in midday trading due in large part to enthusiasm over Yahoo! Inc.'s upcoming addition to the S&P 500.
Just before noon Eastern, internet.com's Internet Stock Index had jumped 14.79, or 2.19 percent, to 690.52, the Nasdaq Composite had climbed 25.18 to 3,361.34 and the Dow Jones industrial average had gained 85.71 to 10,963.52.
DoubleClick Inc. (DCLK) was up 7-7/16 to 167-1/2. The Internet ad company Wednesday acquired Opt-In Email.com, a provider of e-mail marketing and list management. The buy comes on the heels of DoubleClick's launch of a new suite of e-mail applications.
America Online Inc. (AOL) was up 3-1/4 to 76-1/8. The company Wednesday advanced its wireless strategy with the purchase of Tegic Communications for an undisclosed sum. Tegic's technology will be used to develop Internet messaging solutions through wireless devices.
Ashford.com (ASFD) soared 5 to 23 after Amazon.com Inc. (AMZN) announced it was investing $10 million in the luxury goods retailer. Amazon will receive a 16.6 percent stake and will market Ashford on its Web site during the holidays. Amazon was up 1-11/64 to 86-15/64
Also, Salomon Smith Barney restarted coverage on AMZN with a "buy," setting a $120 target.
In a note to clients, Merrill Lynch's Henry Blodget said Wednesday leading e-commerce companies will likely take a pause from their strong holiday run up as investors focus on first-quarter results and competitive pressures.
"Within the B2C sector, we would be most concerned about weaker companies in the e-tailing group, some of which have benefited along with the leaders from the general enthusiasm around the holiday season," Blodget wrote.
Blodget said companies that are gaining market share and increasing international operations, such as Yahoo!, America Online, DoubleClick and Amazon, will likely see minimal damage and recover faster from a post-holiday downturn.
Introducing Internet StockTracker, the new weekly e-mail newsletter from internet.com Corp. 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 $157 -- a savings of $70 off the regular subscription price! e-newsletters