Internet Market Close Report for 1998.05.15

By Steve Harmon | May 15, 1998
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	15-May-98	point change	% change
ISDEX	154.75	-2.76	-1.75%
ISDEX Price Wtd.	1,584.25	-33.81	-2.09%
NASDAQ	1,846.77	-18.59	-1.00%
DJIA	9,096.00	-76.23	-0.83%

Lycos (NASDAQ:LCOS) shares fall 6.7% to $63.375 per share on heavier than normal volume on a planned 3 million share offer which will dilute future earnings--or so those that sold think. At least one research analyst lowers the earnings per share based on the future dilution but maintains a buy rating. We think the capital raised will boost Lycos' ability to sell and market itself, which in turn could add to user growth, which in turn feeds ecommerce deals, which is top and bottom line. That's the bet here, that a dollar spent on acquiring more users today is perhaps as much as $10 next year to acquire a new user.

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. Narrows losses but 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.

ONSALE (NASDAQ:ONSL) and Softbank announce an agreement to do a Japanese version of ONSALE, 60% owned by Softbank and 40% by ONSALE. Softbank contributes cash while ONSALE, technology.