Internet Banks, Brokers On Fire
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While Internet stocks traded in a sideways fashion most of Tuesday, Internet brokers and banks wowed Wall Street with strong gains.
Internet.com's Internet Stock Index gained 7.09, or 1.03 percent, to 696.31 while the Nasdaq Composite lost 15.33 to end at 2,583.48 and the Dow Jones industrial average climbed 55.50 to 10,395.01.
One of the day's strongest gainers was Net.B@nk Inc. (NTBK) which skyrocketed 76-17/32 to 235-1/32 Tuesday after it announced a 3-for-1 stock split. Just late last month, the stock was trading below 75. NetB@nk is one of the few rapidly climbing Internet companies that is actually earning a profit.
Investors continue to bid up the sector as the earnings outlook for the sector remains bright.
Broadcast.com Inc. (BCST) lost 1-1/16 to 146-11/16 despite reporting that its first-quarter revenue more than doubled. Broadcast.com Monday posted a loss of 9 cents a share, 3 cents better than analysts' expectations. The company is being acquired by search engine Yahoo!.
Electronic payment provider CyberCash Inc. (CYCH) leaped 5-15/16 to 21-1/8. The company Tuesday announced a deal with database maker Informix Corp. to integrate its CashRegister payment services with Informix's i.Sell secure online transaction software.
Online community iVillage Inc. (IVIL) dropped 1 to 112-3/4 as three analysts initiated coverage of the stock. Lise Buyer of Credit Suisse First Boston rated the stock a "hold," Paul Noglows of Hambrecht & Quist rated it a "buy" and Goldman Sachs' Michael Parekh issued a "market outperform" rating.
Finally, shares of online auctioneer eBay Inc. (EBAY) dropped 3-3/4 to 172-7/8. The company Tuesday announced plans to raise a record $1.1 billion in a secondary offering of 6.5 million common shares. The company priced the shares at $170 each. Underwriters are expected to receive the shares Friday and they will begin trading soon after.