RealTime IT News

Internet Market Close Report for 1998.06.02

  02-Jun-98 point change % change
ISDEX 130.42 -1.23 -0.93%
ISDEX Price Wtd. 1,317.69 -25.88 -1.93%
NASDAQ 1,761.79 14.97 0.86%
DJIA 8,891.24 -31.13 -0.35%

  • Excite (NASDAQ:XCIT) reports it sold $21 million of advertising on its new Excite-Netscape co-branded search service, which goes live today on Netscape.com. Excite hires 12 new sales staff to help meet the demand. We believe Excite paying $70 million for the preferred two-year relationship with Netscape, the Web's second-largest user and traffic site, will be viewed as "cheap" next year and certainly by 2000--and contrary to what many analysts and investors believed when the agreement was announced just May 4.

    Footnote-We recall June 11, 1997 when Intuit paid Excite $40 million to "sponsor" its financial channel and how the market balked. Terms in the Intuit-xcite deal: Intuit paid $13.50 per share for 2.9 million XCIT shares, or about 20% of XCIT. XCIT closes at $56.625 today, already giving Intuit a healthy return on its investment.

  • Netscape (NASDAQ:NSCP) prepares to meet with financial analysts Thursday in San Francisco with one media report saying the Mountain View, CA-firm may have lost its focus. Au contrare. If anything Netscape appears to be focusing heavily after two years of trying to be Microsoft and unrelenting self-induced infatuation with itself.

    Used to be Mozilla (Microsoft killer) was Netscape's mascot. Now we suggest an alternative based on its lower profile-Yahooilla, as Netscape goes for the top slot against its former ally.

    Its enterprise software also is far from dead, consider that the division revenue hit $96.1 million for the three months ending April 30, 1998, vs. $91.4 million for the three months ending December 31, 1997. Revenue from Web site Netscape Netcenter reached $31.1 million vs. $21.3 million during that same period.

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