Net Stocks Soar Higher After Rough Ride
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Internet issues showed no signs of slowing down in the new millennium. A number of analyst upgrades and positive comments from Merrill Lynch sent business-to-business and infrastructure stocks higher.
Although Merrill expects a first-quarter pull-back in business-to-consumer issues, the firm remains very bullish on InfoSpace.com, Internet Capital Group, HomeStore.com, Exodus, Amazon.com, Yahoo!, America Online and CMGI Inc.
internet.com's Internet Stock Index rocketed 57.08, or 6.63 percent, to 917.43 the Nasdaq composite jumped 61.84 to 4131.15 and the Dow Jones industrial average dropped 139.11 to 11357.51.
Ask Jeeves (ASKJ) surged 25-1/16 to 138. First Union Securities added ASKJ to its Analyst Action List, labeling the natural-language search engine as their top content pick for 2000. The firm has a "strong buy" rating on the stock and a $230 price target.
A report from America Online Inc. (AOL) that its holiday shopping sales more than doubled to $2.5 billion in 1999 helped e-commerce plays. Movers included Amazon.com Inc. (AMZN) , up 13-1/4 to 89-3/8, and e-commerce software and infrastructure providers Ariba Inc. (ARBA) , up 14-3/8 to 191-3/4, and Broadvision Inc. (BVSN) up 19-3/8 to 189-7/16.
Lycos Inc. (LCOS) matured 5-43/64 to 85-15/64 and Fogdog Inc. (FOGD) , soared 5-3/8 to 14-7/8. Thomas Wyman of J.P. Morgan Monday initiated coverage on Fogdog with a "buy" rating and a $25 price target.
Pacific Internet Ltd. (PCNTF) gained 22-15/16 to 69-7/8. The Asian Internet company Monday announced plans to appoint an Israeli representative to find possible investment opportunities there.
Finally, Radware Ltd. (RDWR) jumped 12-3/16 to 55-5/16. The maker of Internet server sof