GE, Xoom Deal Drives Net Stocks Higher

Big-cap Internet stocks were driven higher Monday in a session dominated by a big announcement from General Electric Co. and Inc.’s Internet Stock Index gained 28.79, or 5.29 percent, to 573.02, the Nasdaq Composite gained 22.78 to 2,526.40 and the Dow Jones industrial average shed 24.63 to 11,006.96.

CNET Inc. (CNET) shares soared 22-7/16 to 136-3/16. The company, which co-owns the Snap! portal with NBC, benefitted from news that NBC will merge its Internet assets with and newly-acquired to create the Web’s seventh-largest Web network. Shares of (XMCM) gained 6-3/4 to 81-7/8.

Shares of America Online Inc. (AOL) jumped 10-11/16 to 128-7/8. Rajiv Chaudhri, founder of the technology hedge fund Digital Century, predicted AOL’s earnings may double each year for the next several years.

Chaudhri also said good things about eBay Inc. (EBAY), whose shares vaulted 16-11/16 to 193-3/8. One of the big advantages of eBay, Chaudhri said, is it has no inventory expense.

Search engine Lycos Inc. (LCOS) added 15-3/4 to 105-1/4. Various published reports said USA Networks may stop its efforts to buy the company.

Those reports also benefitted shares of Internet investment firm CMGI Inc. (CMGI), sending them up 16-11/16 to 237-15/16. That firm is Lycos’ largest shareholder and has actively campaigned against USA Networks’ buyout.

Internet broker E*Trade Group Inc. (EGRP) moved up 9-7/16 to 119-13/16. Derek Brown of Volpe Brown Whelan & Co. reiterated E*Trade a “buy.”

Finally, Internet search firm (HITT) gained 4-5/8 to 20-1/8. Life Foundation Trust Monday invested $100 million in the company.

Introducing Internet StockTracker, the new weekly e-mail newsletter from LLC. Every Friday will deliver to your e-mail
in-box the latest performance data on individual Internet companies and
their competitors. Internet StockTracker will deliver to you all the
statistics you need to assess the week’s activity.
Subscribe today and receive the Charter Rate of $127 — a savings of
$100 off the regular subscription price!

News Around the Web