Analyst Helps Spark Internet Rally
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Positive comments from an influential Internet analyst helped spark a broad-based turnaround in Internet stocks Thursday on a day when stocks across all sectors recovered a portion of Wednesday's steep losses.
Internet.com Internet Stock Index jumped 29.30, or 5.74 percent, to 539.90. The broader indices all had a good day as well, with the Nasdaq Composite jumping 69.32 to 2,434.60 and the Dow Jones industrial average leaping 167.61 to 9,834.45.
Alan Braverman, who earlier this month moved to NationsBanc Montgromery Securities from Deutsche Bank, Thursday initiated coverage on nine Internet issues with "buy" ratings.
Braverman initiated coverage with "buy" ratings on Amazon.com Inc. (AMZN), which gained 16-3/16 to 139-7/8; @Home Corp. (ATHM), which climbed 10-1/4 to 146-1/4; Excite Inc. (XCIT), which climbed 8-7/16 to 133-5/16; Infoseek Corp. (SEEK), up 4 to 81-1/8; Lycos Inc. (LCOS), up 15/16 to 92-5/8; Verio Inc. (VRIO), up 2 to 45; Xoom.com Inc. (XMCM), up 2-1/8 to 71-1/8 and Yahoo! Inc. (YHOO), which climbed 18-1/2 to 179.
eBay also filed with the Securities and Exchange Commission to sell an additional 6.5 million common shares.
Web hosting firm Exodus Communications Inc. (EXDS) skyrocketed 28-1/4 to 150 after ING Baring Furman Selz analyst David Levy initiated coverage of the stock with a "buy" rating. Levy expects the stock will rise to 175 over the next nine months.
Investors continued to be kind to Internet IPOs Thursday, helping the debut of OneMain.com Inc. (ONEM). Shares vaulted 17-9/16 to 39-9/16. The company plans to use some of the proceeds to continue its acquisition of Internet service providers in small markets in the Midwest.
E-mail marketer MessageMedia Inc. (MAIL) gained 1-1/2 to 7-3/8 after annoucning Pequot Private Equity Funds was taking a $10 million stake in the company.