Bubble Machine? Internet Stocks Up in a Week What Market Did Nearly All Year

On a price weighted basis, ISDEX jumped almost as much in the past week as
the Dow has all year, led by strong gains in the navigation stocks such as
Excite (NASDAQ:XCIT), Lycos (NASDAQ:LCOS), Infoseek (NASDAQ:SEEK), and
DoubleClick (NASDAQ:DCLK).


Stronger than expected earnings in Yahoo! (NASDAQ:YHOO) helped reignite the
navigation cluster while DCLK moved on its pioneer space status. Ditto
CDnow (NASDAQ:CDNW).


A basket of top-tier Internet security stocks occupies the bottom rung on
ISDEX this week, we suspect out of a lack of anything on the top deal
sphere to get excited about.


CheckPoint finally got acquisitive with Internet-address management
developer MetaInfo Inc. for about $27.5 million or 683,200 shares. But
while CheckPoint breaks the deal space we think this is more along the
lines of one small step for CheckPoint, one small step for Web kind.


The earth-shattering deals have yet to be done in the security space. An
IBM could probably use a CheckPoint as part of its offering. Microsoft
could also, but with the anti-trust eyeballs staring hard, acquiring the
market leader in firewalls may turn too many heads.


The question now is are Internet stocks trading at exorbitant levels? We
think the big runners–those up triple digit year-to-date–could give up
15% easily in the next three months. It’s hard to bet against the tape,
however.


Check the ups and downs:


ISDEX April 7 – 14












































































































































































































































































































































































































































































































ISDEX ®

 

14-Apr-98

% change

Point change

% change

Internet Stock Index

 

close

from

from

from

 

 

 

07-Apr-98

07-Apr-98

31-Dec-97

 

 

 

 

 

 

ISDEX Geometric Average

 

167.49

9.1%

13.90

67.7%

ISDEX Price Wtd. Composite

 

1,725.38

11.3%

175.63

65.6%

NASDAQ

 

1,843.03

2.5%

44.32

17.4%

DJIA

 

9,110.20

1.7%

153.70

15.2%

 

 

 

 

 

 

Security First Net Bank

SFNB

$ 11.44

52%

$3.91

58%

Excite

XCIT

$ 76.00

45%

$23.69

153%

Network Solutions

NSOL

$ 52.88

33%

$13.25

303%

Doubleclick

DCLK

$ 45.50

33%

$11.31

168%

CMG Info

CMGI

$ 89.19

31%

$21.19

195%

Cyberguard

CYBG

$ 16.94

30%

$3.94

201%

Infoseek

SEEK

$ 25.63

29%

$5.75

138%

CDnow

CDNW

$ 35.50

28%

$7.75

122%

Lycos

LCOS

$ 68.63

28%

$14.94

66%

Open Market

OMKT

$ 24.63

26%

$5.13

156%

Yahoo!

YHOO

$ 114.88

23%

$21.63

66%

Sportsline USA

SPLN

$ 37.13

21%

$6.50

245%

N2K

NTKI

$ 34.63

19%

$5.63

137%

CyberCash

CYCH

$ 19.88

19%

$3.13

57%

USWeb

USWB

$ 30.19

15%

$3.94

222%

NewsEdge

NEWZ

$ 15.38

15%

$2.00

15%

Amazon.Com

AMZN

$ 97.19

14%

$11.94

61%

Mindspring

MSPG

$ 71.63

14%

$8.63

113%

Verisign

VRSN

$ 43.88

13%

$4.94

213%

Netscape

NSCP

$ 17.88

11%

$1.81

-27%

Metricom

MCOM

$ 10.63

10%

$1.00

10%

PSINet

PSIX

$ 12.75

10%

$1.19

149%

Mecklermedia

MECK

$ 25.63

8%

$1.88

3%

Egghead.com

EGGS

$ 9.38

7%

$0.63

44%

Broadband Technologies

BBTK

$ 7.44

6%

$0.44

80%

CKS Group

CKSG

$ 22.19

6%

$1.19

57%

Broadvision

BVSN

$ 18.69

6%

$1.00

188%

America Online

AOL

$ 74.31

5%

$3.81

64%

VocalTec

VOCLF

$ 20.00

5%

$0.88

-2%

Axent

AXNT

$ 28.88

3%

$0.88

67%

CheckFree

CKFR

$ 27.88

3%

$0.75

3%

Onsale

ONSL

$ 31.88

2%

$0.75

77%

Spyglass

SPYG

$ 8.75

2%

$0.19

77%

CheckPoint Software

CHKPF

$ 40.81

2%

$0.75

0%

Intuit

INTU

$ 48.25

2%

$0.88

17%

Open Text

OTEXF

$ 19.00

0%

$0.00

42%

Versant Object Technologies

VSNT

$ 6.44

-1%

-$0.06

-53%

IDT Corp

IDTC

$ 31.75

-1%

-$0.31

57%

Earthlink Network

ELNK

$ 66.25

-1%

-$0.75

157%

WavePhore

WAVO

$ 12.81

-1%

-$0.19

37%

PairGain

PAIR

$ 20.94

-3%

-$0.69

8%

@Home Network

ATHM

$ 30.94

-4%

-$1.13

23%

Concentric

CNCX

$ 25.25

-5%

-$1.38

185%

CNET

CNWK

$ 27.88

-6%

-$1.63

-6%

Cylink

CYLK

$ 13.94

-6%

-$0.81

43%

Network Associates

NETA

$ 62.19

-6%

-$3.69

18%

RealNetworks

RNWK

$ 32.75

-6%

-$2.09

136%

Secure Computing

SCUR

$ 11.38

-9%

-$1.13

-4%

Security Dynamics

SDTI

$ 25.06

-10%

-$2.69

-30%

E*TRADE

EGRP

$ 22.44

-17%

-$4.50

-2%

TOTAL

 

1,725.38

11%

176.13

66%

SIMPLE AVERAGE

 

34.51

11%

3.52

66%

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