RealTime IT News

Ideas Of The Tribe: Startup Live! Venture Showcase West Seeks Applicants

Earnings season being better than expected and losses narrowing should have sent ISDEX higher the past week but it didn't -- that's because huge expectations had been built into the Internet stock sector the first week of January.

Said another way, great expectations realized are good but Wall Street wants fantasmal expectations. And that means deals.Spinouts, IPOs, alliances.

That's the fuel behind IDT Corp (NASDAQ:IDTC) coming from obscurity. Yet IDTC shares found favor on rumors, buzz, and genuine curiosity that its Net2Phone division may be more valuable -- and perhaps spun out -- than other parts of IDT.

AltaVista also popped back into the Weblight with plans by Compaq to spin it out from the motherboard into perhaps an IPO. Helping that along is a deal AltaVista made with Microsoft that lands it real estate on MSN as the search engine. Tally ho:

ISDEX ®   26-Jan-99 % change Point change % change
The Internet Stock Index   close from from from
www.isdex.com     19-Jan-99 19-Jan-99 31-Dec-98
           
ISDEX   338.61 -5.2% -18.39 18.1%
NASDAQ   2,433.41 1.0% 25.24 11.0%
DJIA   9,324.58 -0.3% -30.64 1.6%
           
IDT Corp IDTC $14.44 20% $2.38 -6%
Broadvision BVSN $41.63 10% $3.63 30%
Yahoo! YHOO $351.25 9% $28.25 48%
Doubleclick DCLK $93.50 6% $5.56 110%
Verio VRIO $27.63 6% $1.63 23%
Security First Technologies SONE $33.13 6% $1.94 9%
VocalTec VOCLF $15.56 5% $0.75 38%
Network Associates NETA $54.91 4% $2.03 -17%
24/7 Media TFSM $37.00 3% $1.25 32%
ISS Group ISSX $67.25 3% $2.25 22%
America Online AOL $155.00 3% $4.50 0%
Netscape NSCP $65.81 2% $1.31 8%
RealNetworks RNWK $64.25 2% $1.00 79%
Mindspring MSPG $102.88 1% $1.38 68%
Broadcast.com BCST $138.75 1% $1.38 81%
Cisco CSCO $107.13 1% $0.75 15%
Axent AXNT $38.13 0% $0.19 25%
Sportsline USA SPLN $33.38 0% $0.13 114%
Broadcom BRCM $129.50 0% -$0.50 7%
CDnow CDNW $21.50 -1% -$0.31 19%
Lycos LCOS $110.38 -2% -$2.56 99%
Concentric CNCX $37.25 -2% -$0.88 12%
Earthlink Network ELNK $76.63 -3% -$2.38 34%
PSINet PSIX $33.00 -4% -$1.25 58%
eBay EBAY $220.88 -4% -$9.00 -8%
@Home Network ATHM $109.88 -5% -$5.50 48%
GeoCities GCTY $71.00 -5% -$4.00 111%
Excite XCIT $101.38 -8% -$8.63 141%
USWeb USWB $28.25 -8% -$2.44 7%
Verisign VRSN $81.50 -8% -$7.13 38%
N2K NTKI $15.00 -8% -$1.31 15%
Onsale ONSL $45.50 -9% -$4.75 14%
Infoseek SEEK $69.13 -10% -$7.94 40%
Security Dynamics SDTI $25.88 -10% -$3.00 13%
Egghead.com EGGS $20.00 -11% -$2.38 -4%
Exodus EXDS $84.25 -11% -$10.25 31%
E*TRADE EGRP $80.13 -11% -$10.06 71%
CMG Info CMGI $91.63 -13% -$13.38 72%
CheckPoint Software CHKPF $46.94 -15% -$8.56 2%
Spyglass SPYG $15.13 -17% -$3.00 -31%
Open Market OMKT $12.25 -17% -$2.50 5%
Preview Travel PTVL $21.25 -17% -$4.50 15%
Amazon.Com AMZN $115.09 -18% -$24.72 7%
Inktomi INKT $129.81 -18% -$28.19 0%
Beyond.com BYND $23.63 -19% -$5.63 14%
Network Solutions NSOL $169.00 -19% -$40.88 29%
CyberCash CYCH $16.38 -20% -$4.00 9%
CNET CNET $80.13 -20% -$19.63 56%
Open Text OTEXF $23.19 -23% -$6.75 -5%
Cyberian Outpost COOL $24.25 -25% -$8.25 -12%

The news and moves January 20 - January 26:

  • @Home (NASDAQ:ATHM) reports $19.2 million fourth quarter revenue, up 39 percent vs. 4Q97. The net loss before cost of distribution agreements and merger and acquisition related costs for the fourth quarter was $7.6 million, or 6 cents per share, compared to $9.7 million, or 8 cents per share a year ago.

    Cable Internet subs grow 58 percent to 331,000 vs. previous quarter and @Home service launched in 15 new markets, total markets equals 59. Short take: losses heavy. Long take: ATHM has $390 million cash. Remember, it took AOL 10 years to be profitable and achieve critical mass. We don't think that may be as long with @Home.

  • 24/7 (NASDAQ:TFSM) plans a follow-on offering, 4 million shares total; 2 million from the company and 2 million from selling stockholders. Shares of the ad network firm climb $1.50 to $37.25 per share today. In addition, 24/7 bought 60 percent of UK's InterAd Holdings to be redubbed 24/7 Media Europe.

  • XOOM.com (NASDAQ:XMCM - news), posted $3.5 million 4Q revenue, up 50 percent from the third quarter and 722 percent more than a year ago. Net loss for the direct e-commerce/etailer was $2.9 million, or 29 cents a diluted share, excluding a $1.5 million nonrecurring, noncash charge for the issuance of warrants. That compares to a net loss of $3.1 million, or 35 cents per diluted share for the 3rd quarter of 1998, and a net loss of $500,000, or 9 cents per diluted share for the 4th quarter of 1997.

    Annual revenue reached $8.3 million, up 889 percent from the year earlier with 1998 loss of $10.8 million, including a $1.5 million warrants charge.

    Excite (NASDAQ:XCIT) reports fourth-quarter revenue up 163 percent vs. 4Q97 to $54.4 million. That's more revenue in one quarter than it posted for all of 1997. Loss narrows including charges o