RealTime IT News

Net Stocks Again See Afternoon Acceleration

For the second straight session, Internet stocks shifted into high-gear Tuesday afternoon to post healthy gains in advance of the two-day Federal Reserve meeting which began today.

internet.com's Internet Stock Index jumped 22.33, or 2.74 percent, to 835.94, the Nasdaq Composite climbed 111.62 higher to 4051.97 and the Dow Jones industrial average gained 100.52 to 11041.05.

VerticalNet (VERT) continues to reward investors, finishing up 13-7/8 to 252-1/8. The B2B e-commerce portal Tuesday announced an expansion into Europe. British Telecom and Internet Capital Group (ICGE) are among those backing the $227 million venture. Reporter@Large-Luke Fronefield featured ICGE in a reasearch note published today.

Also, the company announced it will split its stock 2-for-1 effective March 31.

Amazon.com Inc. (AMZN) was up 2-7/8 to 67-7/16. The e-tailer Tuesday bought an 18 percent stake in privately-held living.com. Terms were not disclosed. Amazon will add a new section that will sell furniture, bedding and other home items gained by the acquisition.

In addition, Banc of America Securities upgraded the shopping portal from a "market perform" rating to a "buy."

CMGI (CMGI) rose 2-7/8 to 115-7/16. Prudential Securities reiterated its "strong buy" rating on the holding company and raised its price target from $200 to $216.

Doubleclick (DCLK) added 8-13/16 to 107-5/8. Credit Suisse First Boston reiterated its "buy" rating and $175 price target on shares of Doubleclick.

Expedia Inc. (EXPE) gained 5-1/2 to 32-3/4. The Internet travel site majority owned by Microsoft Corp. (MSFT) late Monday bought Travelscape.com Inc. and VacationSpot.com Inc.

StarMedia Network Inc. (STRM) matured 2-5/8 to 34-3/4. The Latin American portal Tuesday paid $15 million for AdNet, SA de C.V., an Internet directory and search engine. StarMedia will pay another $115 million over five years if financial targets are met.

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