Google and eBay
benefited from positive comments by Goldman Sachs on Wednesday.
Goldman reiterated “buy” ratings on Google, eBay and Yahoo , saying the three have stronger growth and profitability than the sector average.
New media will benefit the most from growing broadband adoption, Goldman analyst Anthony Noto predicted in his annual Internet usage study.
“In our view, new media companies are poised to see the greatest marginal benefit from broadband versus prior years and versus e-commerce companies,” Noto wrote.
Noto predicted that 2005 will be a “breakout” year for online advertising, as more companies advertising online. Online advertising will grow 28% this year to $12.3 billion, and e-commerce sales will rise 24%, he predicted.
Google and eBay rose on Noto’s comments, but Yahoo ended the day lower.
The broader market fell on rising oil prices, capping the Nasdaq’s longest winning streak in more than five years at eight days.
The Nasdaq fell 11 to 2050, the S&P 500 lost 4 to 1190, and the Dow fell 45 to 10,457. Volume rose to 1.75 billion shares on the NYSE, but declined to 1.54 billion on the Nasdaq. Decliners led 22-10 on the NYSE, and 19-10 on the Nasdaq. Downside volume was 63% on the NYSE, and 65% on the Nasdaq. New highs-new lows were 53-35 on the NYSE, and 59-62 on the Nasdaq.
Network Appliance fell 5% on in-line results, while Computer Sciences
edged higher after beating estimates.
8×8 , SeaChange
and Mamma.com
fell after reporting losses.
AudioCodes rose 7% on a VoIP deal with Texas Instruments
.
