RealTime IT News

Hackers No Match for Market

Internet stocks surged higher from their mid-day levels despite continued media coverage of "hacker attacks" affecting many of the Web's most heavily populated sites.

CMGI announced a strategic acquisition that will compliment and add to its high-profile portfolio of B2C and B2B e-commerce sites. Network Solutions surprised analysts and was rewarded in Thursday's trading.

internet.com's Internet Stock Index climbed 29.40, or 3.19 percent, to 951.73, the Nasdaq Composite was up 122.37, or 4485.61 and the Dow Jones industrial average fell 55.53 to 10643.63.

Network Solutions Inc. (NSOL) rocketed 36-5/16 to 292-5/16 after the domain registrar reported a fourth-quarter profit of 25 cents a share. That beat forecasts by 2 cents.

Online auctioneer uBid Inc. (UBID) gained 3-11/32 to 30-1/2 on news that it is being acquired by CMGI Inc. (CMGI) for $407 million in stock. CMGI shares finished down 2-3/4 to 117-3/4. The acquisition marks CMGI's entrance into the business to-consumer and business-to-business auction spaces. Chief executive officer of uBid, Greg Jones pointed to his company's auction technology and services as just some of the potential synergies, in a conference call to investors.

eGain Communications (EGAN) added 1/2 to 43-1/2. The company announced that Walgreens is the latest company to sign up for its e-mail management solution. Reporter@Large-Luke Fronefield featured eGain in a two-part series (Part 1/Part 2).

Tumbleweed Communications Corp. (TMWD) jumped 10-1/8 to 78-1/8. The provider of e-mail solutions for e-commerce companies got a boost from U.S. Bancorp Piper Jaffray's Hany Nada who initiated coverage Thursday with a "strong buy."

CyberShop.com Inc. (CYSP) matured 3/4 to 5-15/16. The online department store Thursday announced plans to shutter its retail operations to raise money for a new Internet incubator to be launched soon.

AppNet Inc. (APNT) rose 18-5/8 to 70. The Internet consulting firm Thursday reported several large contract wins and said demand is growing for its Web consulting services.

On the downside, FreeShop.com Inc. (FSHP) slipped 1-7/16 to 40. The Internet marketer filed this week to sell an additional 3 million shares and reported a wider fourth-quarter loss.

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