A slew of earnings reports, most beating estimates, sent Internet issues
higher on Wednesday. The positive reports drove many analysts to upgrade
estimates and price targets for upcoming quarters.
internet.com’s Internet Stock Index was up 16.92, or 1.98 percent, to
872.47, the Nasdaq Composite gained 20.48 to 4151.29 and the Dow Jones
industrial average lost 71.36 to 11489.36.
Shares of Netopia Inc. (NTPA)
lost 2-1/4 to 57-7/8. The DSL equipment provider reported a loss of $0.01
per share, five cents narrower than analysts had expected. Revenues rose 106
percent to $16.3 million. Robertson Stephens reiterated its “buy” rating.
Juniper Networks Inc. (JNPR)
was up 1/4 to 119. The company reported fourth-quarter profits of 3 cents
before special items. That beat forecasts by 2 cents. Lehman Brothers raised
its price target from $133 to $150.
One of the biggest losers was high-speed chip maker Broadcom Corp. (BRCM)
, off 10-7/16 to 318-1/16. Investors punished the stock even though the
company reported earnings of 31 cents a share, 4 cents better than analysts’
expectations. It also set a 2-for-1 stock split.
A number of firms revised their targets on the stock, including Salomon
Smith Barney, which raised its price target by $100 to $400 and maintained a
“buy” rating. Goldman Sachs upped its fiscal 2000 earnings estimate to $1.43
from $1.25 and Dain Rauscher Wessels upped its target by $130 to $430 and
maintained its “buy” rating.
Digital Island Inc. (ISLD)
finished down 1 to 81 after trading as high as 86-11/16. The computer
network provider purchased privately-held Live On Line Inc. for $70 million
in cash and stock.
E*Trade Group Inc. (EGRP)
fell 1-3/4 to 26-3/16. The online broker reported a first-quarter net loss
of 2 cents a share. On an operating basis, the company lost 15 cents a
share, beating estimates calling for a 21-cent loss. Revenue grew 42 percent
to $246 million. The company also signed up 330,000 new accounts.
ecting. Revenue jumped to $5.5 million from $2.3 million a year ago.
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