RealTime IT News

Internet Incubators Lead Sector Higher

Internet issues took a breather for the most part on Wednesday, although incubators remained a hot commodity for investors. While Internet Capital Group flirted with a $50 billion market cap for most of the day, a Hong Kong based Internet incubator stole the show, rising 125 percent.

internet.com's Internet Stock Index gained 0.48, or 0.06 percent, to 872.34, the Nasdaq Composite jumped 26.15 to 3937.30 and the Dow Jones industrial average matured 3.06 to 11203.60.

Internet Capital Group (ICGE) rose 8-1/2 to 192-1/2. Goldman Sachs analysts placed a "market perform" rating on the stock, while Deutsche Banc Alex. Brown started coverage with a "buy" rating.

Pacific Century Cyberworks (PCCLF) surged 1-11/16 higher, or 125 percent, to 3-3/64. Merrill Lynch, Hong Kong has a near-term/long-term "buy" rating on the stock. The Hong Kong based Internet Incubator, which owns a 4 percent stake in CMGI, traded on volume of 79 million shares.

Another high-profile incubator, CMGI (CMGI) , rose 4-3/8 to 274-5/8.

NetRatings Inc. (NTRT) jumped 3-1/2 to 35-1/2. Nielsen Media Research Inc. Wednesday announced it was increasing its stake in the Internet measuring firm to 54 percent. It will pay $246 million in cash for the 43 percent it doesn't already own.

CommerceOne (CMRC) shot up 70 to 550. The B2B e-commerce software company announced that Schlumberger Oilfield Services conducted its first live auction using CommerceOne Auction Services.

internet.com (INTM) , the publisher of this site, rocketed 15-9/16, or 31 percent higher, to 66-9/16; a new all-time high after announcing the acquisition of LinuxStart.com.

Shares of Red Hat (RHAT) dropped 20-3/16 to 236-7/8. Reporter@Large-Luke Fronefield will be addressing the Linux phenomenon and the stocks within the space next week.

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