RealTime IT News

Priceline Becomes A Value Stock

Priceline.com rose Monday on news that famed value investor Prince Alwaleed bin Talal plans to invest $50 million in the company. The broader market was mixed as sellers finally ran out of steam.

The ISDEX gained 2 792, while the Nasdaq slipped 6 to 3971. The S&P 500 gained 5 to 1500, and the Dow rose 19 to 11,240. Volume was unchanged at 430 million shares on the NYSE and 700 million on the Nasdaq. Advancers led 14 to 10 on the NYSE, but decliners led 20 to 16 on the Nasdaq. Oracle and Red Hat report earnings on Thursday. The PPI for August will be reported on Thursday and the CPI on Friday. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our new after hours trading site.

Priceline rose 1 1/2 to 27 1/4 on news of the Saudi prince's investment, the second high-profile value investor to bet on a fallen Internet stock. The first was Bill Miller of Legg Mason Value Trust, who believes Amazon.com should be valued in the mid-60s. Amazon gained 1 5/16 to 44 1/4 despite Merrill Lynch analyst Henry Blodget raising his third-quarter loss estimate on the stock from 30 to 32 cents a share. Blodget said long-term, patient investors in Amazon will be rewarded. The stock, which traded as low as 41 on the news, has been holding well around its breakout point in the 42-43 range. That said, as we've pointed out previously, a return to the 31-36 level in the next few weeks is possible. Also on a value note, Dallas Fed President Robert McTeer said the stock market is much less of a bubble now than it was earlier this year.

Telecom equipment stocks, the market's leader for much of this year, continued to struggle on concerns that telecom equipment spending may be slowing. Cisco fell 1 to 62 7/8 and Juniper Networks was down 3 7/16 to 194 3/16, but Northern Telecom rose 1 1/2 to 73 1/2.

Commerce One rose 4 5/8 to 76, continuing its run after closing above 70 resistance on Thursday. Prudential upgraded the stock to Strong Buy and set a $90 price target. Ariba gained 2 3/4 to 156 1/2, i2 rose 5 3/8 to 165 7/8, FreeMarkets added 4 1/8 to 76 3/4, and PurchasePro climbed 3 15/16 to 69 5/8.

Check Point Software rose 2 7/16 to 148 11/16 after Merrill Lynch began coverage with a neat-term Accumulate and long-term Buy, calling the company a core software holding.

DoubleClick , up 1 3/16 to 34 7/8, and Covad , up 1 3/16 to 19 9/16, are holding analyst meetings today, and JDS Uniphase , up 15/16 to 115 1/4, will hold one tomorrow. Covad rose last week on news that the Verizon strike won't keep the company from meeting its numbers this quarter.

Liberate gained 1 1/2 to 31 1/2 on news of a European contract win.

internet.com , publisher of this Web site, slipped 1 5/16 to 26 after announcing the acquisition of advertising and marketing information site clickz.com for $16 million in cash and stock.

Radware , up 1 9/16 to 31 7/8, and Akamai , off 1 9/16 to 65 15/16, announced an Internet content partnership.

SpeechWorks fell 8 5/16 to 64 3/4 after a Barron's article questioned the company's valuation.

Allaire , off 2 1/2 to 22 1/2, continued to fall despite positive an