RealTime IT News

Earnings Worry Sweeps Over Internets

Earnings season jitters continued to take hold as a number of companies begin reporting. AOL's numbers were positive, but a number of analysts have conflicting views on the proposed merger with Time Warner.

internet.com's Internet Stock Index was up 5.41, or 0.62 percent, to 877.88, the Nasdaq Composite gained 38.21 to 4189.50 and the Dow Jones industrial average fell 138.06 to 11351.30.

Shares of America Online Inc. (AOL) lost 11/16 to 64-3/16. The company reported operating earnings of 8 cents a share, a penny higher than expected. The firm also added 1.8 million subscribers.

Analysts came out with mixed actions following the results. Robertson Stephens and Warburg Dillon Read reiterated their "strong buy" while Dain Rauscher cut the firm to "buy" from "strong buy." Also, Merrill Lynch said Thursday it still sees the AOL, Time Warner (TWX) merger as a "strategic positive."

Shares of Lycos (LCOS) lost 1-15/16 to 75-3/4.( Reporter@Large Luke Fronefield featured the company in his latest research note:

MarketWatch.com (MKTW) added 1-1/2 to 41-1/4. Prudential started coverage with a "strong buy" rating and $60 price target.

Inktomi Corp. (INKT) rose 1-11/16 to 100. The company is expected to report a loss of 4 cents for the quarter ended Dec. 31 compared with last year's same quarter loss of 7 cents per share.

Engage Technologies Inc. (ENGA) jumped 20-9/16 to 97-9/16. The Internet ad firm controlled by CMGI Inc. (CMGI) Thursday bought two CMGI ad properties for $2.46 billion.

Extreme Networks (EXTR) was up 15-5/8 to 93-3/4. The networking equipment maker reported fiscal second-quarter earnings of 11 cents, 2 cents higher than forecasts.

BackWeb Technologies Ltd. (BWEB) gained 2-9/16 to 42-13/16. Streaming media giant Real Networks Inc. (RNWK) Thursday invested $15 million in the firm. It also announced plans to use BackWeb software to deliver music to its users. Shares of RNWK were unchanged at 153-13/16.

InfoSpace.com Inc. (INSP) rose 10-5/16 to 140-1/4 after signing a deal with GTE Wireless to provide wireless Internet access to GTE mobile subscribers.

MyPoints.com Inc. (MYPT) fell 6-1/8 to 55-7/8. The Internet marketer announced plans to sell up to 4 million shares in a secondary offering.

Redback Networks Inc. (RBAK) dropped 5-7/8 to 200-1/8. The network equipment maker beat earnings forecasts, although speculation was investors were displeased after the company did not declare a stock split.