RealTime IT News

Microsoft & Summer: Wall Street Taking Cues From Gates & States

A long time ago in a geekdom far, far away, MS-DOS quietly hummed along and kept many a PC thumping to some unheard beat that only fans of serious late night parties held at Radio Shack or Tandy could understand. No more. MS-DOS' offspring, Windows, and its overtures to the Web make for headlines around the world. Presidents and kings send e-mail.

All of which hasn't been lost in the Beltway, Board room, or Big Board. By our reckoning, it's the Internet opportunity that's been fueling Microsoft's (NASDAQ:MSFT) market capitalization rise to north of $200 billion. Anti-trust allegations and consternation seem to have slowed that steam down as Washington State's biggest digital exporter's attention has been snagged by politicians and pork barrelers, which we think could open windows (pun intended) of opportunity for rivals and others to attack the beach head.

On the other hand, while we believe that this represents a speed bump on Microsoft's superbuyway, the softness in MSFT of late may only be a footnote in the ongoing value chain of the great machine.

That's the dramatic back drop to Wall Street's drop the past week. Check our latest tally:

ISDEX May 13 - 19

Mecklermedia's   19-May-98 % change Point change % change
ISDEX ®   close from from from
Internet Stock Index     13-May-98 13-May-98 31-Dec-97
           
ISDEX Geometric Avg.   149.93 -4.6% -7.31 50.1%
ISDEX Price Wtd.   1,549.69 -4.1% -66.81 51.0%
NASDAQ   1,845.87 -1.1% -20.31 17.5%
DJIA   9,054.65 -1.7% -157.19 14.5%
           
CMG Info CMGI $ 51.00 5% $2.38 237%
CNET CNWK $ 39.69 4% $1.63 35%
Broadvision BVSN $ 15.84 4% $0.59 144%
Netscape NSCP $ 27.88 3% $0.75 14%
Versant Object Technologies VSNT $ 5.63 2% $0.13 -59%
Cyberguard CYBG $ 13.75 2% $0.25 144%
Mindspring MSPG $ 61.81 2% $1.00 84%
Mecklermedia MECK $ 20.88 1% $0.25 -16%
Security Dynamics SDTI $ 25.00 1% $0.25 -30%
Onsale ONSL $ 30.13 1% $0.19 67%
Axent AXNT $ 25.84 -1% -$0.22 50%
CyberCash CYCH $ 17.59 -1% -$0.16 39%
IDT Corp IDTC $ 32.75 -1% -$0.31 62%
Intuit INTU $ 49.38 -1% -$0.50 20%
Excite XCIT $ 61.00 -2% -$1.25 103%
America Online AOL $ 87.69 -3% -$2.31 94%
Amazon.Com AMZN $ 90.38 -3% -$2.50 50%
Network Associates NETA $ 66.63 -3% -$1.88 26%
VocalTec VOCLF $ 17.38 -3% -$0.50 -15%
Spyglass SPYG $ 10.81 -3% -$0.31 119%
Egghead.com EGGS $ 9.19 -3% -$0.31 41%
Security First Net Bank SFNB $ 10.38 -3% -$0.38 43%
CheckPoint Software CHKPF $ 30.50 -4% -$1.13 -25%
E*TRADE EGRP $ 23.00 -4% -$0.94 0%
Concentric CNCX $ 22.50 -4% -$1.00 154%
@Home Network ATHM $ 39.06 -5% -$1.88 55%
Yahoo! YHOO $ 118.16 -5% -$5.84 71%
Network Solutions NSOL $ 41.47 -6% -$2.47 216%
WavePhore WAVO $ 13.75 -6% -$0.88 47%
Verisign VRSN $ 35.88 -6% -$2.38 156%
NewsEdge NEWZ $ 12.50 -7% -$0.88 -7%
PairGain PAIR $ 17.31 -7% -$1.25 -11%
Infoseek SEEK $ 30.13 -7% -$2.19 180%
Broadband Technologies BBTK $ 7.50 -7% -$0.56 82%
Sportsline USA SPLN $ 30.75 -7% -$2.38 186%
Secure Computing SCUR $ 11.00 -7% -$0.88 -7%
Lycos LCOS $ 63.22 -8% -$5.22 53%
CheckFree CKFR $ 22.63 -8% -$2.06 -16%
Open Text OTEXF $ 16.50 -9% -$1.63 23%
RealNetworks RNWK $ 25.44 -9% -$2.56 83%
Open Market OMKT $ 15.22 -10% -$1.66 58%
Metricom MCOM $ 10.25 -10% -$1.13 6%
CDnow CDNW $ 21.47 -10% -$2.41 34%
Doubleclick DCLK $ 36.50 -10% -$4.13 115%
USWeb USWB $ 20.94 -10% -$2.44 123%
Earthlink Network ELNK $ 53.25 -12% -$6.94 107%
CKS Group CKSG $ 19.50 -12% -$2.63 38%
Cylink CYLK $ 11.06 -12% -$1.56 13%
PSINet PSIX $ 11.19 -13% -$1.69 118%
N2K NTKI $ 18.44 -17% -$3.81 26%
TOTAL   1,549.69 -4% -67.69 51%
SIMPLE AVERAGE   30.99 -4% -1.35 51%

  • 05.19.98: Excite (NASDAQ:XCIT) files to sell 1.35 million shares of XCIT to pay for its $70 million deal with Netscape and to raise working capital. The move follows Lycos' filing of 3 million shares on May 14. We think all the search and guide sites in the top tier could (and should) tap the public market to cash up for the coming battle with Microsoft in the search space.

  • 05.18.98: Mecklermedia (NASDAQ:MECK), The Internet Media Company and publisher of this report, agrees to acquire ISPCON trade show producer and BoardWatch magazine publisher for $29.5 million cash and stock. The buys help solidify Mecklermedia's leading event and information source status for Internet business professionals. Included in the acquisitions are the Web sites Ispcon.com and Boardwatch.com, which will be integrated with Mecklermedia's Web resource network Internet.com.

  • 05.15.98: Metricom (NASDAQ:MCOM) narrows its losses and doubles its revenues with $3.6 million first quarter revenue vs. $1.8 million 1Q97; loss reaches $11.7 million or $0.69 loss per share vs. $13.9 million or $1.03 loss per share. The wireless Internet access provider spent more heavily on product costs, and while it narrowed losses, it's still in buildout mode. Its Ricochet access service is available in San Francisco Bay, Seattle, and Washington, D.C., on a few corporate campuses, and 11 major airports in the U.S.

  • 05.14.98: Pointcast finally files to go public with 3.75 million shares at a target of $11 per share. We think this could be one of those high-profile Internet stock offers along the lines of Netscape, Yahoo! or Broadcom that rocks Wall Street's world and alters the investmentscape. Look for our own unique analysis next week, significant in that I first saw Pointcast in 1994 when one of its creators showed me it pre-alpha. There must have been 5 employees at the time. I thought it was revolutionary then, what about now? See ISR May 19 for our analysis.

  • 05.13.98: USWeb (NASDAQ:USWB) agrees to acquire Gray Peak Technologies (GPT) in a stock deal valued between $80 million to $100 million. The GPT acquisition will allow USWeb to offer more network integration, network security, and voice over IP. We think intranets will increasingly use the Web protocols for a range of network-based communications and distribution. As such, this positions USWeb as a better solution provider.