RealTime IT News

Net, Tech Stocks Power Higher

Shares of Internet and technology companies soared on Monday despite concerns about earnings and cash burn rates.

The ISDEX gained 19 to 748, while the Nasdaq rose 129 to 3989, blasting through resistance at 3900 and 3982. The Dow climbed 108 points and the S&P 500 was up 21. However, volume decline to 920 million shares on the NYSE and 1.4 billion on the Nasdaq. Advancers edged decliners 15 to 13 on the Big Board and 20 to 19 on the Nasdaq. The economic calendar for the week is light, and the big news is likely to be the OPEC meeting and Oracle's (Tuesday) and Micron Technology's (Thursday) earnings reports.

Inktomi , up 12 13/16 to 138 1/4, RealNetworks , up 6 13/16 to 52 11/16, Juniper Networks , up 12 1/4 to 125 1/4, and Ariba , up 7 1/2 to 81 5/8, powered the ISDEX higher. Ariba is nearing the top of its two-month trading range at 83.

Shares of AppNet Systems fell 5 to 34 1/16 after the company inadvertently announced that it had reached a deal to be acquired by Commerce One , when in fact the companies are only in talks. The faulty release set the terms of the deal at 0.8 shares of CMRC for each share of APNT, or about $40 per APNT share. AppNet later confirmed that it is in discussions and with Commerce One, but added that significant issues remain unresolved.

Barron's was at it again, with another article on dotcom cash burn rates. Companies that may run out of cash in the coming months include Netzee , down 3/4 to 6, Bluefly , off 3/4 to 2 1/2, RoweCom , down 15/32 to 5 1/4, CDnow , down 5/32 to 2 29/32, drkoop.com , unchanged at 1 7/8, Claimsnet.com , off 5/8 to 3 3/8, Pilot Network Services , down 1 5/8 to 11 3/8, US Search.com , off 7/32 to 1 19/32, Streamline.com , falling 3/8 to 2 3/4, Netivation.com , off 1/4 to 2 3/16, Mortgage.com , down 1/4 to 1 3/8, and PlanetRx.com , off 1/2 to 2.

Shares of DoubleClick fell 1 43/64 to 36 13/16 after trading as low as 32 7/8. Robertson Stephens reduced revenue estimates on the company due to a difficult Internet advertising environment, and said the stock will likely move sideways for the next 3-6 months.

Shares of S1 Corp. fell 6 to 22 1/16 on a First Union Securities downgrade from Strong Buy to Buy. First Union cited increased price competition and reduced its price target from $150 to $35.

MicroStrategy rose 4 3/8 to 42 15/16 after the troubled company's oft-rumored financing finally materialized. MicroStrategy said it raised $125 million through a convertible preferred stock sale.

Rhythms NetConnections fell 2 3/4 to 12 5/8 after Thomas Weisel downgraded the firm to Buy from Strong Buy and lowered its price target to $20, based on an increasingly competitive DSL market.

Shares of Exodus Communications continued to run up in advance of its 2-for-1 split after the close tomorrow. The stock rose 2 1/4 to 105 1/2, with an intraday high of 108 1/2.

Recent IPO Sonus Networks gained 14 to 113. The firm's post-IPO quiet period ended today, and Goldman Sachs began coverage with a Buy.

Other strong Internet infrastructure issues included Corning , up 6 13/16 to 252 1/4, Sycamore Networks , up 15 5/8 to 116, and SDL Inc. , up 13 5/8 to 313 1/2.

Musicmaker.com , off 1/16 to 1 15/16, reached a deal with America Online to end their interactive marketing agreement. Financial terms were not disclosed. AOL, off 5/16 to 54 3/8, announced plans to begin selling $250 TV