RealTime IT News

IPOs Steal the Show

A few Internet companies making their debut in the public marketplace and optimistic comments from industry analysts sent the ISDEX and Nasdaq indices higher on Tuesday.

The long awaited IPO of an online e-tailer also provided plenty of excitement for Internet investors.

internet.com's Internet Stock Index (ISDEX) was up 21.58, or 2.39 percent, to 924.33, the Nasdaq Composite rocketed 106.04 higher to 4427.81 and the Dow Jones industrial average added 51.81 to 10957.60.

Buy.com (BUYX) priced 14 million shares at $13 per share with lead underwriter Merrill Lynch. Shares surged 12-1/8, or 93 percent, to 25-1/8.

Fastnet (FSST) priced 4 million shares at $12 per share with lead underwriter ING Baring Selz. Shares of the Internet Service Provider (ISP) jumped 4-5/8, or 39 percent, to 16-5/8.

Red Hat (RHAT) added 1-7/16 to 90-3/8 after JP Morgan initiated coverage with a long-term attractive rating and $115 price target.

Climbers included About.com Inc. (BOUT) , up 5-15/16 to 73-15/16. The online guide was rated "strong buy" by Deutsche Banc Alex. Brown's Andrea Williams who initiated coverage Tuesday.

Reuters Group PLC (RTRSY) American depositary receipts soared 26-1/8 to 125-1/2 and Multex.com Inc. (MLTX) gained 1-5/8 to 31-1/2. Reuters plans to form a new Web site targeting European private investors in partnership with Multex.

Akamai Technologies Inc. (AKAM) was up 12-15/16 to 240-15/16. The company, whose software optimizes the delivery of Web content, was initiated by Lehman Brothers' William Garrahan with a "buy" rating.

Starmedia Network Inc. (STRM) jumped 7-1/8 to 48-1/4. The company reported a quarterly loss of $27.8 million, or 44 cents a share. That's 6 cents better than expectations.

Hotjobs.com (HOTJ) lost 2-7/16 to 28-1/2. The online job site reported a fourth-quarter loss of 15 cents a share, excluding one-time items. That's a penny better than expectations.

barnesandnoble.com (BNBN) was off 9/16 to 11-1/8. The online bookseller reported a fourth-quarter loss of 27 cents a diluted share, in line with estimates.


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