RealTime IT News

IPOs Steal the Show

Three hot Internet IPOs added fuel to the fire on Wednesday, as specific Internet issues continued zooming ahead.

Andover.net, Agency.com, and NetRatings contributed to the surge, despite Yahoo! putting somewhat of a damper on the party. GoTo.com (GOTO) was added to the ISDEX and saw its shares rally 5-1/2 higher to 92-3/16.

internet.com's Internet Stock Index climbed 2.94, or 0.37 percent, to 796.61, the Nasdaq Composite lost its record pace, closing down 0.84 to 3586.08 and the Dow Jones industrial average gave up 38.53 to 11068.12.

Andover.net (ANDN), a destination for products, news and online tools for Linux and Open Source communities, raised $72 million after pricing 4 million shares at $18 per share. In today's trading, ANDN shares climbed 45-3/8, or 250 percent, to 63-3/8.

Agency.com (ACOM) saw its shares surge 50, or 192 percent, to 76. The Internet consulting firm priced 5.9 million shares at $26 per share.

NetRatings (NTRT) jumped 11 to 28. NTRT priced 4 million shares at $17 each. The company measures Internet traffic through a partnership with Nielsen Media Research.

Exodus Communications (EXDS) added 21-1/16 to 165-9/16. Merrill Lynch's Henry Blodget and Sofia Ghachem rolled out coverage with a "buy" rating and a $200 price target.

In a note to clients, the tandem wrote: "the $18 billion web hosting and content delivery markets should create over $70 billion in market cap by 2003. We expect Internet pure-plays to account for about $30 billion. Exodus is a category killer in web hosting and network management solutions. We believe the company is one of the best-positioned players to consolidate this market and rapidly move upstream into value-added services."

Digital Island Inc. (ISLD) soared 45-5/16 to 114-15/16 after Sun Microsystems Inc. (SUNW) announced it was taking a minority stake in the networking company.

In the business-to-business sector,