Going Long? Sorting Out Hot & Not Internet Stocks

The Green Bay Packers came to San Francisco’s 3COM Park and made the
49ers say “cheese” for the NFC championship title. The stats told of a
story of yards gained and lost, mud slung and packed, long bombs waiting
for a receiver to grab onto for a touchdown.


Sounds a lot like Internet stocks in the first weeks of 1998. Here’s our
own version of the Web bowl, stat-heavy of course, for the period January 6
to January 13, and since December 31, 1997:



The Playing Field: Internet



















































































































































































































































































































































































ISDEX ® Ticker 13-Jan-98 %
change
Point change %
change
Internet Stock Index symbol close from from from
      06-Jan-98 06-Jan-98 31-Dec-97
           
ISDEX Geometric Average   99.92
-1.7% -1.69 0.1%
ISDEX Price Wtd. Composite   808.63
-0.5% -4.26 -0.9%
NASDAQ   1,541.63
-2.4% -38.51 -1.8%
DJIA   7,732.13
-2.2% -174.12 -2.2%
           
Amazon.Com * AMZN $ 55.75
-4% -$2.31 -7%
America Online AOL $ 89.25
-1% -$0.75 -1%
@Home Network * ATHM $ 24.94
10% $2.31 -1%
CheckPoint Software CHKPF
$ 40.00
0% $0.00 -2%
CKS Group CKSG $ 14.38
4% $0.50 2%
CMG Info CMGI $ 29.94
1% $0.25 -1%
CNET CNWK $ 26.00
6% $1.38 -12%
Concentric * CNCX $ 9.50
-5% -$0.50 7%
CyberCash CYCH $ 11.50
-11% -$1.38 -9%
E*TRADE EGRP $ 22.84
-7% -$1.75 -1%
Earthlink Network * ELNK $ 28.50
16% $4.00 11%
Excite XCIT $ 33.19
-2% -$0.56 11%
Forefront FFGI $ 8.00
-2% -$0.13 2%
Infoseek SEEK $ 10.69
-1% -$0.06 -1%
Lycos LCOS $ 36.38
-12% -$5.00 -12%
Mecklermedia MECK $ 24.13
-7% -$1.88 -3%
Mindspring MSPG $ 29.56
3% $0.81 -12%
N2K * NTKI $ 23.63
35% $6.13 62%
Netscape NSCP $ 19.06
0% $0.06 -22%
Network Solutions * NSOL $ 18.13
7% $1.25 38%
Onsale * ONSL $ 17.63
-2% -$0.38 -2%
Open Market OMKT $ 10.63
-1% -$0.13 10%
Open Text OTEXF
$ 11.50
-5% -$0.56 -14%
PSINet PSIX $ 5.94
-9% -$0.59 16%
Raptor RAPT $ 12.13
-10% -$1.38 -8%
RealNetworks * RNWK $ 16.38
17% $2.38 18%
Security Dynamics SDTI $ 37.63
-3% -$1.19 5%
Security First Net Bank SFNB $ 6.88
0% $0.00 -5%
Sportsline USA * SPLN $ 17.88
34% $4.50 66%
Spyglass SPYG $ 5.50
0% $0.00 11%
Trusted Information Systems TISX $ 10.25
8% $0.75 2%
USWeb * USWB $ 10.31
-16% -$1.94 10%
Versant Object Technologies VSNT $ 5.13
-64% -$9.25 -63%
VocalTec VOCLF
$ 19.75
-3% -$0.63 -4%
Yahoo! YHOO $ 65.78
3% $1.78 -5%
TOTAL   808.63
-0.5% -4.26 -0.9%
SIMPLE AVERAGE  
23.10
-0.5% -0.12 -0.9%



  • Jan 6: CMG Info (NASDAQ:CMGI) boasts of the deal between two of its
    portfolio companies. Closely-held GeoCities, the free Web site presence
    provider, inked a deal Jan. 5 with Yahoo! (NASDAQ:YHOO) to become
    the exclusive homesteader on Yahoo! in return for investment from Yahoo! and
    Japan’s Softbank. Lycos (NASDAQ:LCOS), which CMG owns more than 50% of, is
    the exclusive search engine for GeoCities. Net net, CMG expects the Yahoo!
    agreement to boost GeoCities and Lycos traffic.


  • Jan 7: Lycos (NASDAQ:LCOS) signs a multi-million dollar deal with
    AutoConnect, one of the largest auto auction services in the U.S. with more
    than six million cars run before buyers each year. AutoConnect will pay
    Lycos an undisclosed sum that we estimate, based on our knowledge of
    commerce deals like this, could be in the $10 million range with perhaps a
    piece of sales also thrown in.


  • Jan 8: Excite (NASDAQ:XCIT) signs a deal with CyberMeals whereby the “order
    online and get delivered to your door” food service will pay Excite $15.5
    million over four years. Excite also gets a cut of sales for allowing
    CyberMeals to be exclusive takeout food service on its network.


  • Jan 9: Sportsline USA (NASDAQ:SPLN) reports that fourth quarter page views
    increased 251% vs. the same quarter last year to an average 2.8 million per
    day. SPLN shares rallied on a tout from BA Robertson Stephens but closed
    down on profit taking.


  • Jan 12: N2K (NASDAQ:NTKI) rallies on its preliminary 4Q and year-end
    results with revenue expected of about $4.7 million, up 591% for 4Q, while
    total year revenues may reach jump 559% to about $11.2 million vs. 1996.
    The Web-based music reseller has enjoyed success largely through its first
    to market status and agreements with high-profile Internet/online firms
    including AOL.


  • Jan 12: Yahoo! is one step closer to taking on AOL (NYSE:AOL),
    a move we forecast nearly two years ago on April 9,
    1996
    in the very first Internet Stock Report.


    The latest news has it linking up with Internet backbone heavyweight MCI
    (NASDAQ:MCIC) in a broad co-marketing and distribution agreement to launch
    a new co-branded, co-marketed online service, Yahoo! Online, powered by MCI
    Internet. In addition, Yahoo tops Relevant Knowledge’s Web site December
    ranking with more than 16 million unique monthly users.


  • Jan. 13: Netscape (NASDAQ:NSCP) and Novell (NASDAQ:NOVL), through joint
    venture Novonyx, ship Netscape software that runs on Novell’s NetWare
    platform. Is Novell still a player? By some accounts, perhaps one of the
    notable things about Novell’s NetWare may be its superior NDS or network
    directory services.

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