Internet stocks rallied, paused for profit taking and showed a few
surprises as Spyglass, USWeb, OpenText and Earthlink topped the list of
movers and zoomers, proving that 1998 could be the year of the comeback for
many, and the moment of truth for others.
Ironically, Sportsline (NASDAQ:SPLN) came in last in the number crunching
here, just as its CBS Winter Olympics moment shines nightly for 1 billion
viewers worldwide. Logical explanation: the exposure was already discounted
into SPLN shares starting perhaps even way back in November when we were
the first to say that SPLN was one to watch.
Even after a haircut given by overzealous twitch-happy traders, SPLN may
continue to be one to keep an eye on this year and next. Stay tuned.
Stand by for our latest tally:
Ups, Downs & In Betweens
ISDEX ® | Ticker | 17-Feb-98 | % change | Point change | % change |
Internet Stock Index | symbol | close | from | from | from |
10-Feb-98 | 10-Feb-98 | 31-Dec-97 | |||
ISDEX Geometric Average | 124.22 | 4.6% | 5.44 | 24.4% | |
ISDEX Price Wtd. Composite | 952.08 | 2.5% | 22.86 | 17.8% | |
NASDAQ | 1,703.43 | -0.3% | -5.61 | 8.5% | |
DJIA | 8,398.50 | 1.2% | 102.89 | 6.2% | |
Spyglass | SPYG | $ 6.80 | 23% | $1.27 | 38% |
USWeb | USWB | $ 16.69 | 16% | $2.31 | 78% |
Open Text | OTEXF | $ 13.88 | 16% | $1.88 | 4% |
Earthlink Network | ELNK | $ 44.38 | 15% | $5.75 | 72% |
Infoseek | SEEK | $ 13.53 | 12% | $1.41 | 26% |
Open Market | OMKT | $ 15.00 | 8% | $1.13 | 56% |
Forefront | FFGI | $ 10.56 | 8% | $0.75 | 35% |
CheckPoint Software | CHKPF | $ 41.13 | 7% | $2.81 | 1% |
Security First Net Bank | SFNB | $ 10.94 | 7% | $0.69 | 51% |
@Home Network | ATHM | $ 27.75 | 6% | $1.63 | 10% |
N2K | NTKI | $ 26.13 | 6% | $1.50 | 79% |
Trusted Information Systems | TISX | $ 11.06 | 5% | $0.56 | 11% |
CMG Info | CMGI | $ 41.38 | 5% | $1.88 | 37% |
CNET | CNWK | $ 30.75 | 4% | $1.13 | 4% |
Network Solutions | NSOL | $ 20.50 | 4% | $0.75 | 56% |
Concentric | CNCX | $ 14.50 | 4% | $0.50 | 63% |
America Online | AOL | $ 112.00 | 3% | $3.00 | 24% |
PSINet | PSIX | $ 8.50 | 2% | $0.19 | 66% |
Onsale | ONSL | $ 26.06 | 2% | $0.44 | 45% |
Mecklermedia | MECK | $ 27.38 | 1% | $0.38 | 10% |
RealNetworks | RNWK | $ 16.06 | 1% | $0.19 | 16% |
CKS Group | CKSG | $ 18.56 | 1% | $0.19 | 31% |
Lycos | LCOS | $ 41.63 | 1% | $0.25 | 1% |
Netscape | NSCP | $ 21.06 | 0% | $0.06 | -14% |
VocalTec | VOCLF | $ 18.81 | 0% | -$0.06 | -8% |
Excite | XCIT | $ 43.75 | -1% | -$0.25 | 46% |
Yahoo! | YHOO | $ 64.25 | -1% | -$0.38 | -7% |
Mindspring | MSPG | $ 47.88 | -1% | -$0.38 | 42% |
Versant Object Technologies | VSNT | $ 8.25 | -1% | -$0.13 | -40% |
Security Dynamics | SDTI | $ 33.75 | -3% | -$0.88 | -6% |
E*TRADE | EGRP | $ 26.00 | -3% | -$0.75 | 13% |
Amazon.Com | AMZN | $ 61.75 | -3% | -$1.88 | 2% |
CyberCash | CYCH | $ 12.63 | -4% | -$0.50 | 0% |
Sportsline USA | SPLN | $ 18.81 | -12% | -$2.56 | 75% |
TOTAL | 933.27 | 2.8% | 25.42 | 17.8% | |
SIMPLE AVERAGE | 28.28 | 2.8% | 0.77 | 17.8% |
Feb 11: Earthlink Network (NASDAQ:ELNK) inks a multi-year bonanza deal with
Sprint (NASDAQ:FON) buying 30% of the customer-focused Internet service
provider for $45 per share. The agreement has many parts including
distribution and promotion for Earthlink throughout Sprint’s telephone user
base. Earthlink also gets Sprint’s 130,000 Internet subscribers.
In related news from February 13, Earthlink (NASDAQ:ELNK) closes its loss
gap and reports record 1997 revenue, up 144% to $79.2 million while its
fourth quarter revenue is up 95% to $24 million. EarthLink posts a $29.9
million annual loss for last year and 4Q97 loss of $6.6 million. Net losses
per share for 4Q97 and year ending 1997 were $0.59 and $2.99, respectively,
vs. 1996 losses per share of $4.50 and $1.17 4Q97.
Feb 12: ONSALE (NASDAQ:ONSL) reports record revenue for 1997 with gross
merchandise sales of $115.9 million, up 277% vs. 1996. Revenues reach $89.0
million vs. $14.3 million in 1996. Net loss for 1997 is $2.5 million, or
$0.16 per share, vs. net income of $361,000, or $0.03 per share, in 1996.
Fourth-quarter gross merchandise sales reach a record $41.1 million, up 27%
vs. third quarter while 4Q97 revenue is $33.0 million, up 31% vs. 3Q97. Net
loss for 4Q97 is $1.7 million, or $0.09 per share.
Feb 13: @Home (NASDAQ:ATHM) business access division, @Work, and Cox
Communications (NYSE:COX) bundle up for Cox@Work Internet to provide small
and medium-sized businesses with high-speed access to the Internet via
@Home Network, a hybrid fiber-coax cable based high-speed network. The
service is available through Cox in Orange County, San Diego, and Phoenix.
Maybe @Home should aim for more @Work after all? That’s where the speed is
valued more, at least for now.
Feb 17: Spyglass’ (NASDAQ:SPYG) strategy of going after the embedded device
market may begin to pay off as Nokia inks a deal to use Spyglass’ browser
on digital TV boxes in Europe, bypassing Microsoft and Netscape as choices.
The deal sends SPYG shares up 20% to $6.80 per share, still a long way off
its 52-week high of more than $12 and further still from the glory days of
1995 when SPYG traded north of $60.
In our opinion, if devices continue to roll out, few have the experience
that Spyglass does in making browsers for them. Microsoft and Netscape
aimed at the broad market, not the thin one. Now they pay the price.
