AOL’s better than expected earnings failed to boost the stock on Wednesday, as troubles in the online unit and new accounting concerns outweighed the positives in the report.
The AOL unit was the only one of AOL Time Warner’s six divisions to report a year-over-year decline in revenue, and subscriber losses exceeded estimates. AOL also guided revenue estimates lower, and reported additional accounting concerns that could delay a spinoff of the company’s cable unit.
But investors were more focused on Amazon.com , which soared 15% after beating estimates and raising guidance.
The Nasdaq rose 13 to 1719, the S&P 500 edged higher to 988, and the Dow climbed 35 to 9194. Volume declined to 1.34 billion shares on the NYSE, but rose to 1.84 billion on the Nasdaq. Advancers led 17-15 on the NYSE, and 17-13 on the Nasdaq. Upside volume was 49% on the NYSE, and 56% on the Nasdaq. New highs-new lows were 79-11 on the NYSE, and 172-11 on the Nasdaq.
After the close, Overture , Symantec
, Computer Associates
, Veritas
and Qualcomm
beat estimates, but Qualcomm also warned. EDS
and RealNetworks
met estimates, and Sina
matched estimates and guided higher.
During the day, Sun fell 19% after missing earnings and revenue estimates, while Broadcom
fell 11% despite beating estimates.
DoubleClick surged 11% on its results, and AskJeeves
soared 19% after beating estimates.
Lucent fell 6% after the company delayed its return to profitability once again.
AsiaInfo fell 14% after missing estimates, while StorageTek
declined 4% on its results and Websense
rose 6%.
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