Net Stocks Shrug Off Earnings Warning
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A series of deals helped Internet stocks post gains Monday as all the major indices set new records, shrugging off an earnings warning from Compaq Computer Corp., issued late Friday.
Internet.com's Internet Stock Index climbed 41.38, or 6.37 percent, to 690.57, the Nasdaq Composite added 5.69 to 2,598.74 and the Dow Jones industrial average jumped 165.67 to 10,339.51.
One of the day's biggest gainers was Net.B@nk Inc. (NTBK) which soared 39 to 158-1/2. The stock continued to grow on the heels of better-than-expected customer and earnings growth. Also, electronic mortgage lender Virtuallender.com Inc. (VLDC) leaped 2 to 9-3/8 after sealing a deal with NetB@nk to process mortgage loans.
Online broker Ameritrade Holding Corp. (AMTD) gained 26-11/16 to 142-1/4 on optimism that the company will beat earnings expectations when it releases its latest numbers Thursday. Also benefiting were shares of E*Trade Group Inc. (EGRP) which gained 5-7/8 to 96. The company Monday introduced a new advertising campaign.
Business Internet provider AboveNet Communications Inc. (ABOV) soared 45-3/8 to 150-1/4 after signing a co-location agreement with Internet advertising company DoubleClick Inc.. DoubleClick (DCLK) gained 17-5/8 to 146-1/2.
Infoseek Corp. (SEEK) gained 9-3/4 to 87-1/8 on news that Walt Disney Co., which holds a 43 percent stake in Infoseek, is looking to combine its various Internet assets and may sell off a portion of them to the public. Disney is also looking to take control of Infoseek sooner than expected.
RealNetworks Inc. (RNWK) jumped 39-1/2 to 247 after the company announced a deal with IBM Corp. IBM will incorporate Real's technology into software that will be used to distribute music over the Internet. IBM's venture is seen as one of the first serious threats to the MP3 format.