RealTime IT News

Market Slides on TheStreet.com Rumors

Internet stocks headed south in afternoon trading despite positive comments from industry analysts and buy-out buzz surrounding shares of TheStreet.com.

internet.com's Internet Stock Index (ISDEX) fell 4.86, or 0.52 percent, to 926.98, the Nasdaq composite gained 6.88 to 4427.65 and the Dow Jones Industrial average plunged 156.68 to 10561.41.

CheckFree Holdings (CKFR) announced it is acquiring Tranpoint, a direct competitor. JP Morgan reacted by raising their price target on CKFR from $135 to $228. Shares rocketed 32 higher to 100-1/4.

TheStreet.com (TSCM) added 13/16 to 16-13/16. The financial news and editorial Web site has hired investment bank Wasserstein Parella & Co. to explore strategic business opportunities and alternatives, including a possible sale of the company.

PurchasePro.com (PPRO) was up 13-1/4 to 133-1/4. First Boston initiated coverage with a "strong buy" rating and 12-month $205 price target.

In addition, First Boston raised its near-term price target on Razorfish (RAZF) to $75. Shares finished down 6-1/2 to 45-3/8.

After yesterday's close, Lycos (LCOS) reported earnings of $0.03 per share, two cents better than the First Call mean estimate. Merrill Lynch analyst, Henry Blodget reacted by raising his near-term rating from "accumulate" to "buy."

"Lycos reported an impressive quarter, exceeding consensus revenue, EPS and pageview estimates. The outlook for the next few quarters remains strong. We are raising our estimates and, for the following reasons, raising our near-term rating to Buy, with a 12-month price objective of $100. The valuation is cheap by Internet standards (90X C2001E EPS), and we believe there is still upside to our estimates" wrote Blodget in a note to clients. Shares of LCOS added 3-9/16 to 72-5/8.

internet.com analyst, Chris Nerney featured Lycos in his daily Stock Tracker report.

ShopNow.com (SPNW) lost 7/8 to 12-13/16. CIBC World Markets initiated coverage with a "buy" rating and $30 price target.

Netcentives (NCNT), an Internet customer loyalty company, announced it will acquire Post Communications for roughly $333 million in stock. Post provides e-mail marketing services. Shares of NCNT lost 2-3/4 to 49-1/4.

Shares of the natural language search engine, Ask Jeeves (ASKJ) fell 4 to 78-1/2. The company has filed for a secondary offering totalling 1.8 million shares.

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