RealTime IT News

Internet Market Close Report for 1998.02.12

ISDEX & Market Moves Snapshot

  12-Feb-98 % change point change
ISDEX Geometric Average 124.21 1.67% 2.04
ISDEX Price Weighted Composite 965.69 1.04% 9.97
NASDAQ 1,714.34 0.34% 5.79
DJIA 8,369.60 0.66% 55.05

  • ONSALE (NASDAQ:ONSL) reports record revenue for 1997 with gross merchandise sales of $115.9 million, up 277% vs. 1996. Revenues reach $89.0 million vs. $14.3 million in 1996. Net loss for 1997 is $2.5 million, or $0.16 per share, vs. net income of $361,000, or $0.03 per share, in 1996.

    Fourth-quarter gross merchandise sales reach a record $41.1 million, up 27% vs. third quarter while 4Q97 revenue is $33.0 million, up 31% vs. 3Q97. Net loss for 4Q97 is $1.7 million, or $0.09 per share.

    We think ONSALE has the potential as a leader in the Web auction space to dominate the category as Amazon does books. But, unlike books, there doesn't appear to be any established "traditional" auction houses able to to this PC/electronics/cars, etc auction business. There are no 'Barnes & Nobles' (in reference to the booksellers war with Amazon for marketshare) of Web auctions waiting to pounce, as far as we know. ONSALE could perhaps consider buying a rival and gaining more speed.

  • Lycos (NASDAQ:LCOS) plans to launch Lycos Korea in conjunction with LG InterNet, the premier Korean Internet service provider.