RealTime IT News

eBay Soars On Bullish Revenue Forecast

eBay carried Internet stocks higher on a bullish revenue forecast, but blue chip stocks sold off sharply under the weight of rising oil prices and a sinking euro. Engage soared after hours on a bullish earnings report.

The ISDEX gained 12 to 805, and the Nasdaq climbed 31 to 3897. But the S&P 500 slipped 8 to 1451, and the Dow lost 101 to 10,687, but more than 100 points off its low. Volume rose to 1.1 billion shares on the NYSE and 1.8 billion on the Nasdaq. Decliners led 16 to 11 on the NYSE and 23 to 16 on the Nasdaq. Engage reports earnings tonight, and CMGI and Liberate report tomorrow. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our new after hours trading site.

After the bell, Engage , which slipped 7/16 to 8 1/16 in regular trading, beat earnings estimates by 14 cents with a 14-cent loss. The stock soared to 10 after hours. The company also announced that it would lay off 175 employees, or about 13% of its workforce, and reorganize from five units to two. The company will take a first quarter charge of about $3.5 million.

eBay soared 10 11/16 to 76 3/8 on news that the company is projecting 50% year-over-year revenue growth through 2005. For more on the story, click here.

PurchasePro bolted 11 1/4 to 73 on a Lehman Brothers Buy rating and $120 price target.

Handspring gained 5 1/2 to 51 1/2 on a Wall Street Journal report that the company will introduce a $299 device that combines the handheld organizer with the cell phone.

Amazon.com , off 3 1/8 to 37 5/8, continued to slide on concern about a lukewarm analyst meeting yesterday and the loss of Yahoo's business to Barnesandnoble.com , which gave back 1/8 to 5 13/16. Chase H&Q reiterated Buy on Amazon and expressed faith in the company's ability to execute. Technical note: As we said some time ago, if Amazon bottoms in the 31-36 range in the September-October timeframe, it will form an inverse head-and-shoulders bottom.

Yahoo gained 2 1/16 to 110 1/8 on optimism that Barnesandnoble.com offered the company good terms. At least one analyst thinks the Barnesandnoble/Yahoo deal was a plus for Amazon; click here for the story.

Excite@Home lost 11/16 to 15 1/2 after CEO George Bell announced his resignation. Bell will remain chairman through 2001.

NaviSite beat estimates by 5 cents with a 34-cent loss, and Prudential upgraded the stock to Strong Buy, but the stock fell 1 3/16 to 37 11/16.

Homestore.com lost 1 11/16 to 48 1/2 on reports of a Justice Department investigation into the company's competitive practices.

USinternetworking lost 23/32 to 7 9/32 on a First Union Securities downgrade and concerns that the company will miss its numbers.

HearMe fell 2 51/64 to 4 on a revenue warning. US Interactive also fell on an earnings warning, down 1 5/16 to 2 11/16. TheStreet.com also fell on an earnings warning, down 1 1/8 to 5.

Some technical comments on the market: The good news is that the Dow preserved its October 1998 trendline at 10,500 today, just touching the t