RealTime IT News

Amazon Beats Estimates, Rises 10% After Hours

Amazon.com beat estimates after the bell Tuesday and traded 10% higher. But Nortel Networks missed its revenue number, sending optical networking stocks sharply lower.

Blue chip stocks rose during the day, but technology and Internet shares lost ground. The ISDEX lost 17 to 651, and the Nasdaq dropped 48 to 3419. The S&P 500 climbed 2 to 1398, and the Dow surged 121 to 10,393. Volume rose to 1.15 billion shares on the NYSE and 1.85 billion on the Nasdaq. Advancers led by 15 to 12 on the NYSE, but decliners led 21 to 18 on the Nasdaq. The big economic reports for the week are Thursday's employment cost index and Friday's GDP report. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our after hours trading site.

Amazon.com rose 3 points after hours after closing at 29 9/16. The company beat estimates by 7 cents with a 25-cent loss, and revenues of $638 million trounced estimates of $600-$608 million. AskJeeves also beat estimates, but announced the resignation of CFO Thomas Low. VerticalNet also beat estimates after the bell.

But Nortel's earnings report could test the market on Wednesday. The stock plummeted 12 points after hours to 51 after revenues came in at $7.3 billion, $300 million less than expected, and the company forecast slower optical networking growth in 2001. The optical networking segment has led the market since May, and Nortel has been at the forefront of that sector.

During Tuesday's regular session, MarchFirst imploded 6 15/16 to 4 7/8 after missing estimates by 19 cents with 1-cent earnings. Scient lost 4 3/16 to 18 as Internet consultants' woes continued.

DoubleClick rose 1 1/16 to 14 3/16 after announcing a long-term agreement with NBC Internet .

FreeMarkets rose 5 1/2 to 55 7/16 on better-than-expected earnings. About.com slipped 9/32 to 24 17/32 after beating estimates by 5 cents with an 18-cent loss. Extended Systems lost 4 15/32 to 35 17/32 after the company's 15-cent loss beat estimates by 3 cents.

Ashford.com slipped 1/16 to 2 3/8 after beating estimates by 8 cents with a 19-cent loss. The company also raised forward guidance and predicted profitability by the end of 2001. Ameritrade , off 3/4 to 14 3/4, beat estimates by 3 cents with a breakeven quarter. ServiceWare.com , off 1/8 to 5 3/8, beat estimates by a penny with an 11-cent loss.

Globespan , up 1 1/4 to 91 1/2, and Metromedia Fiber , up 1 3/4 to 19 1/16, led active trading in DSL stocks after beating estimates handily. Covad slipped 3/8 to 6 11/16, but Rhythms rose 3/8 to 3 13/16 and also beat earnings estimates after the close.

Cobalt slipped 3/8 to 2 5/8 after beating estimates by 9 cents with a 35-cent loss.

Broadcom gave back 13 3/4 to 238 after trading as high as 261 3/16 on news that it will be added to the Nasdaq 100 Monday. Ariba , which will join the index on Friday, slipped 5 to 127 1/2.

Blue Martini tacked on 2 31/32 to 41 23/32 on a multi-year alliance with Hewlett-Packard .

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