RealTime IT News

Ariba Soars In After-Hours Trading

Ariba soared in after-hours trading Wednesday after beating earnings estimates, capping a day in which Internet stocks gained more than 8%.

The ISDEX soared 57 to 753, a day after closing just below the important 700 level. The Nasdaq bolted 143 to 4099, taking out key resistance. The S&P 500 added 12 to 1493, above the important 1488 level, and the Dow added 56 to 10,783. Volume rose to 1 billion shares on the NYSE and 1.76 billion on the Nasdaq. Advancing issues led 17 to 11 on the Big Board and 24 to 15 on the Nasdaq. Juniper Networks will report tomorrow, as will CNET. For more on earnings, visit our new earnings calendar and reported earnings. The Producer Price Index for June will come out on Friday.

Ariba soared in after-hours trading to as high as 118 after closing at 103 1/2. The company reported a third-quarter loss of 5 cents a share, 3 cents better than expected. The move completes the stock's objective of 117 after breaking out at 85 recently.

B2B stocks were strong across the board in Wednesday's trading, after Jefferies & Co. made positive comments about the group. Commerce One added 9 3/8 to 51 7/8, VerticalNet bolted 5 15/16 to 46 1/4, PurchasePro soared 7 3/8 to 40 1/2 and FreeMarkets gained 7 7/8 to 45 7/8.

But the real star of the day was Yahoo , which led Net stocks higher in a broad, sharp advance, rising 19 7/16 to 124 15/16. Analysts had been making cautionary comments about the company for weeks, based on weakness in Internet advertising. But Yahoo surprised with earnings of 12 cents per share, beating analysts estimates (10 cents) and the whisper number (11 cents). Revenues ($270 million) and page views (680 million) also topped estimates. In the conference call, Yahoo said that less than 10% of its advertisers are financially questionable, and said the Internet shakeout could benefit the company. The company did not reveal how much of its revenues come from Internet companies. The company's comments were less cautious than analysts had been predicting. In an interview on CNBC, Yahoo Chairman Timothy Koogle would not say whether the company's margins will decline, a concern of analysts who expect the company to increase spending in the third or fourth quarter. Koogle said analysts should expect margins in the 34-38% range. Morgan Stanley Dean Witter analyst Mary Meeker raised her revenue and earnings projections for the company, but did not raise her Outperform rating. For more on Yahoo's earnings, click here.

Internet stocks rebounded strongly on the Yahoo news. eBay soared 8 11/16 to 52 5/8, back above the important $50 level. DoubleClick recovered 3 to 31 1/2. InfoSpace regained 2 3/4 to 46 1/8.

Advertising-supported portals rose strongly. AskJeeves added 1 7/16 to 15 7/16, CNET soared 7 11/16 to 29 1/8, and GoTo bolted 5 1/4 to 15 7/16. Donaldson, Lufkin and Jenrette said it expects an upside earnings surprise from GoTo. For more on GoTo, click here.

Interwoven gained 22 1/16 to 149 3/16 on a CS First Boston Buy rating after the acquisition of wireless and XML technology developer Neonyoyo. CSFB said it expects the company to exceed estimates.

PSINet gained 2 1/8 to 22 1/4 despite a DLJ downgrade from Top Pick to Buy on conc