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No Guts, No Glory: Internet Stocks Are Up 18.9% So Far This Year, Olympian?

Giant slalom at 70 MPH and triple spins on hard ice are moves de jour at Nagano, where the world's greatest athletes twist and turn for glory.

Of course, anyone familiar with the hot and cold nature of investor sentiment when it comes to the lineup of Internet stocks knows that there's equally a run for the gold on Wall Street. So far ahead of the pack this year: ISDEX, up 18.9% vs. the best Nasdaq Composite could do at 8.8%. The bronze medal goes to the Dow Industrials.

Here's our latest tally:

The Contenders

ISDEX ® Ticker 10-Feb-98 % change Point change % change
Internet Stock Index symbol close from from from
      03-Feb-98 03-Feb-98 31-Dec-97
           
ISDEX Geometric Average   118.78 5.3% 5.95 18.9%
ISDEX Price Wtd. Composite   929.22 3.0% 27.06 15.7%
NASDAQ   1,709.04 2.6% 42.70 8.8%
DJIA   8,295.61 1.7% 135.26 4.9%
           
Open Market OMKT $ 13.88 36% $3.69 44%
Concentric CNCX $ 14.00 29% $3.19 58%
CyberCash CYCH $ 13.13 25% $2.63 3%
Mindspring MSPG $ 48.25 25% $9.50 43%
Earthlink Network ELNK $ 38.63 17% $5.63 50%
N2K NTKI $ 24.63 17% $3.50 68%
Netscape NSCP $ 21.00 15% $2.81 -14%
PSINet PSIX $ 8.31 11% $0.81 62%
America Online AOL $ 109.00 9% $9.25 20%
Network Solutions NSOL $ 19.75 9% $1.63 50%
E*TRADE EGRP $ 26.75 8% $2.00 16%
CKS Group CKSG $ 18.38 8% $1.31 30%
CMG Info CMGI $ 39.50 7% $2.75 31%
@Home Network ATHM $ 26.13 7% $1.75 4%
Security First Net Bank SFNB $ 10.25 6% $0.63 41%
CheckPoint Software CHKPF $ 38.31 6% $2.19 -6%
RealNetworks RNWK $ 15.88 6% $0.88 14%
Trusted Information Systems TISX $ 10.50 6% $0.56 5%
USWeb USWB $ 14.38 6% $0.75 53%
Versant Object Technologies VSNT $ 8.38 3% $0.25 -39%
Amazon.Com AMZN $ 63.63 3% $1.81 6%
Mecklermedia MECK $ 27.00 2% $0.63 9%
Infoseek SEEK $ 12.13 2% $0.19 13%
Lycos LCOS $ 41.38 1% $0.38 0%
Open Text OTEXF $ 12.00 0% $0.00 -10%
Yahoo! YHOO $ 64.63 0% -$0.22 -7%
Security Dynamics SDTI $ 34.63 -3% -$0.94 -3%
Spyglass SPYG $ 5.53 -5% -$0.28 12%
Onsale ONSL $ 25.63 -5% -$1.31 42%
VocalTec VOCLF $ 18.88 -6% -$1.13 -8%
CNET CNWK $ 29.63 -10% -$3.25 0%
Forefront FFGI $ 9.81 -10% -$1.13 26%
Excite XCIT $ 44.00 -11% -$5.19 47%
Sportsline USA SPLN $ 21.38 -12% -$3.00 99%
Raptor RAPT merged w/ AXNT NA NA NA
TOTAL   929.22 4.8% 42.25 15.7%
SIMPLE AVERAGE   27.33 4.8% 1.24 15.7%

  • February 10: AOL (NYSE:AOL) reports net income of $20.8 million, or $0.17 per share on a diluted basis for its fiscal 1998 second quarter ended December 31, 1997. Revenues jump 45% vs. the same quarter last year to a record $592 million. These results compare to a net loss of $129.1 million or $1.37 per share on revenues of $409.4 million in last year's corresponding quarter.

    Notably, ads, commerce, and "other" revenue is up 87% to $108.8 million. Access price increase to $21.95/month for unlimited use, up from $19.95, and the promotion of Bob Pittman to president and COO, moves AOL shares up to a record high February 9.

  • February 9: CMG Info (NASDAQ:CMGI) gets a $10 million investment from Japan's Sumitomo to pursue Internet opportunities in Japan. CMG's @venture division holds investments in many Internet firms including Lycos (NASDAQ:LCOS) and GeoCities. On a related note, Intel and Microsoft own just under 5% of CMGI shares each.

  • February 6: CyberCash (NASDAQ:CYCH) raises $15 million through placing convertible preferred stock and options to two private equity funds. The Internet commerce firm may raise another $15 million if certain conditions are satisfied. We would think those conditions may be a certain revenue level. So far the idea of digital payment systems have not been as large as many had expected when CyberCash began in 1994.

  • February 5: Netscape (NASDAQ:NSCP) rides the renewed vigor of takeover talk with an announcement that 3,000 Original Equipment Manufacturers (OEMs), Internet Service Providers (ISPs), software developers, Web content providers, and others have committed to distribute more than 36 million copies of Netscape browsers. On takeout price we estimate NSCP could fetch $3 billion in whole, or its Web site NetCenter perhaps $400 million to $500 million. The usual suspects for all or part of Mozilla: IBM, Sun, AOL.

  • February 4: Excite (NASDAQ:XCIT) completes the acquisition of Web ad concern MatchLogic, which through its five U.S. and European data centers served 2,500 sites and 500 million ad impressions December 1997. The deal announced January 15 was valued at 3.2 million shares of XCIT, then $89 million. On February 4, the deal value hit $154 million. MatchLogic posted $4 million sales last year.