RedHat, AltaVista Make for Strong Net Finish
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Positive analyst comments as well as the announcement that the last top-tier portal will be going public had Internet stocks rising again on Monday. Red Hat surprised analysts and investors in its earnings call, but the reaction in its stock price was even more surprising.
internet.com's Internet Stock Index gained 8.44, or 1.03 percent, to 828.66, the Nasdaq Composite jumped 30.81 to 3783.87 after briefly crossing 3,800 earlier in the session, and the Dow Jones industrial plunged 113.16 to 11144.27.
In the business-to-business sector, Internet Capital Group (ICGE) surged 22, or 18 percent, to 143-5/8. (Editors Note- Reporter@Large-LukeFronefield, interviewed ICGE's CEO, Walter Buckley. http://www.internetstockreport.com/reporter/article/0,1785,1941_262701,00.ht ml
Amazon.com (AMZN) matured 2-15/16 to 97. Morgan Stanley analyst Mary Meeker, in an interview with Barron's, predicted stronger-than-expected holiday shopping would benefit the e-tail giant. She said the company's sales could approach $1 billion. Also, Amazon.com-backed grocery delivery service, HomeGrocer.com filed to raise as much as $250 million through an initial public offering. Currently public online grocer, WebVan (WBVN) added 7/16 to 19-1/4.
CMGI Inc. (CMGI) rose 10-3/8 to 222-3/16. The holding company's portal play, AltaVista, filed for an IPO. The offering is expected to raise more than $300 million for the last major portal to enter the public marketplace. CMGI also filed with the SEC to sell up to $1 billion in securities.
VeriSign Inc. (VRSN) rocketed 19-3/16 to 150-1/8. The Internet security company Monday purchased Signio Inc. and Thawte Consulting for $1.3 billion in stock. The company said the acquisitions will enhance its security and e-commerce offerings.
Shares of Red Hat (RHAT) jumped 15-1/16 to 267-15/16. The company reported earnings early Monday morning, missing estimates by a penny. First Call projected a loss of 4 cents vs. an actual loss of a nickel. The Linux servicing company did however announce a 2-for-1 stock split which added surprising momentum.
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