CNET (NASDAQ:CNET) tops ISDEX in gainers this week as the
techno-news/developer site and cable programmer is expected to report strong earnings next week. CNET shares rally 50% from January 26 as speculation also
centered on it being a possible takeover candidate by a major media company.
CNET has a stable of valuable properties and we see it as one of the few
pioneering Web firms with brand recognition.
Said another way, this is what ZD
and Wired wanted to be but got bogged down in print. Natural-born buyers of CNET,
NBC's name has been kicked around. The GE unit already owns 4.9% ofCNET and
part of CNET's SNAP!, the guide service. The usual other suspects could be trade
publishers like ZD or CMP, but the price may be frothy forthem.
News behind the
moves: PSINet (NASDAQ:PSIX) starts a wireless Internet access service
with 128 Kbps capabilities in select cities. It plans on upgrading the service to
512 Kbps in 1999 and up to 2 megabits per second in 2000. PSI says
it's targeting some 200,000 businesses in its targeted areas.
USA (NASDAQ:SPLN) reports $9.3 million fourth-quarter revenue with $10.1 million
loss. Full year results are $30.55 million vs.$12 million for 1997. Losses for
1998 reach $35.5 million vs. $34.17million loss for 1997. Security
Dynamics (NASDAQ:SDTI) posts $46.9 million revenue for 4Q98 vs. $41.1 million
for 4Q97. EPS is $0.30 for 4Q98 vs. $0.10 EPS 4Q97. Full-year results are $171.3
million revenue vs. $140.6 million for 1997. Fully-diluted EPS is $0.69 for 1998
vs. $0.42 for 1997.Broadcom (NASDAQ:BRCM) beat estimates with $12.8
million net income or$0.26 EPS vs. the First Call consensus of $0.18 EPS for
its fourth quarter. Revenue hits $70 million vs. $17.3 million 4Q97. BRCM also
set a 2-for-1 stock split. We think the broadband chip maker could well become
the most significant chipmaker in the telco DSL and cable modem market just as
the market starts to take off this year and next. BRCM was one of our top
10 stocks to watch for 1999 (see Archives, January 6).eBay (NASDAQ:EBAY)
blows away earnings estimates also with $2.8 million4Q98 earnings or $0.07 EPS
vs. First Call's target of $0.04 EPS. 4Q98 revenue reaches $19.5 million vs.
$2.6 million 4Q97 while total 1998 revenue is $47.4 million vs. $5.7 million.
Sets a 3-for-1 stock split.Amazon.com (NASDAQ:AMZN) posts
narrower-than-expected losses (without acquisition charges) of $0.14 loss per
share vs. First Call's projectedloss of $0.18 per share. Revenue soars 300% to
$253 million vs. 4Q97. Full-year revenue is $610 million vs. $148 million in
1997. We think Amazon's in a weird "in between stage" not small enough to enjoy
earnings nor quite large enough to be able to throw off incremental earnings
on sheer volume. Yet we think Amazon could get there within 12 to 14 months
to net income and revenue north of $1.5 billion annually by 2000.
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