A number of upgrades by influential Internet analysts helped propel Internet stocks Monday as a number of issues reversed course to turn midday red ink to gains by the closing bell.
internet.com’s Internet Stock Index jumped 25.21, or 5.18 percent, to 511.79, the Nasdaq Composite climbed 45.80 to 2,524.14 and the Dow Jones industrial average soared 109.54 to 10,909.38.
Cable Internet provider @Home Corp. (ATHM) was one of the day’s biggest turnaround stories. After being as low as 87, investors came back to drive the stock up 9-1/4 to close at 103-3/4. The climb came despite a federal judge Friday ordering AT&T to open its broadband network to competitors in Portland, Ore. AT&T is one of @Home’s largest shareholders. Many are speculating the Portland ruling could eventually be expanded to cover all of @Home’s territories.
America Online Inc. (AOL) slumped 3-1/2 to 114-1/2 after being as high as 120-1/2. Earlier Monday, Keith Benjamin, Internet analyst at BancBoston Robertson Stephens reiterated his “strong buy” rating on AOL. Benjamin said Friday’s Portland court ruling should benefit the company, which has been fighting to get placement on cable networks.
Online brokers recouped some of last week’s losses that came after Merill Lynch and Paine Webber both announced plans to offer online trading.
E*Trade Group Inc. (EGRP) closed up 4-3/16 to 41-7/8. E*Offering, the online investment bank backed by E*Trade, launched a new Web site Monday and announced its first initial public offering. Other online brokers were also moved higher, including National Discount Broker Group (NDB), which gained 3-15/16 to 43-15/16, Charles Schwab (SCH) added 5-15/16 to 106-15/16 and Ameritrade Holding Corp. (AMTD) climbed 7-1/16 to 88-1/4.
Amazon.com Inc. (AMZN) gained 8-15/16 to 117-3/8. The online retailer of books, music and videos said Monday it expected to serve its 10 millionth customer later in the day, making it the first e-tailer to hit that milestone.
Copper Mountain Networks (CMTN)added 1-1/2 to 65-7/8. The maker of DSL equipment was rated “neutral” in new coverage by Morgan Stanley Dean Witter’s Alkesh Shah.
CMGI Inc. (CMGI) gave back some of its earlier gains to end up 1-1/2 to 65-7/8 after being as high as 66-3/8. The Internet incubator said Dell Computer Corp. and Microsoft Corp. had bought stakes in CMGI holding Navisite Inc. Navisite is a Web hosting firm.
Perfumania Inc. (PRFM) added 1-5/32 to 4-7/32. The company announced plans to sell a 33 percent stake in perfumania.com, its Internet retailing arm, to the public. Shares are expected to sell for $7 to $9.
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