Earnings Season in Full Swing

Internet investors Tuesday were mostly staying on the sidelines, waiting for a number of earnings reports from sector leaders due after the closing bell.

At 11:30 a.m. Eastern, internet.com’s Internet Stock Index was off 10.36, or 1.18 percent, to 867.42, the Nasdaq Composite had climbed 8.17 to 4,057.84 and the Dow Jones industrial average was up 59.56 to 11,631.76.

One of the sector’s biggest gainers was Kana Communications Inc. (KANA), up 35-1/16 to 232-1/16. The e-mail management software maker announced plans for a 2-for-1 stock split.

Yahoo! Inc. (YHOO) was off 19-1/4 to 416-13/16. The search engine reports fourth-quarter earnings later Tuesday. Analysts are expecting a 15-cent profit, up from 7 cents a year ago.

America Online Inc. (AOL) was off 7-3/8 to 65-1/4. The stock continued to give ground following Monday’s mega-merger announcement with Time Warner Inc. (TWX).

A number of analysts were out Tuesday with comments on the deal. Merrill Lynch’s Henry Blodget sees AOL falling to $55 a share, although he’s generally enthusiastic about the merger. A number of analysts were saying it will cause AOL to be valued more like a traditional media company than a high-flying Internet stock. Schroder & Co. also predicted the deal will slow AOL’s growth rate.

Juno Online Services Inc. (JWEB) had climbed 6-1/8 to 44-1/8. The Internet provider reported a wider fourth-quarter loss, although its subscriber base more than doubled.

Ariba Inc. (ARBA) was up 5-13/16 to 199-13/16. The B2B e-commerce company will be reporting earnings later Tuesday. Analysts expect a 12-cent loss compared to a 7-cent loss a year ago.

E*Trade Group Inc. (EGRP) was down 1 to 27-1/16. The online broker is also reporting earnings Tuesday. Analysts are expecting a 20-cent profit.

Priceline.com Inc. (PCLN) was off 1 to 53-1/4. The “name-your-price” retailer set a one-day sales record of $3 million on Monday.

Infospace.com Inc. (INSP) had jumped 10-1/4 to 124-3/4 after being selected by Vodafone AirTouch to deliver content to its wireless customers worldwide.

USinternetworking Inc. (USIX) was up 5-1/16 to 50-3/4 after it was rated a “buy” by J.P. Morgan Securities who initiated coverage Tuesday.

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