Earnings season being better than expected and losses
narrowing should have sent ISDEX higher the past week but it didn’t —
that’s because huge expectations had been built into the Internet stock
sector the first week of January.
Said another way, great expectations
realized are good but Wall Street wants fantasmal expectations. And that
means deals.Spinouts, IPOs, alliances.
That’s the fuel behind IDT Corp
(NASDAQ:IDTC) coming from obscurity. Yet IDTC shares found favor on rumors,
buzz, and genuine curiosity that its Net2Phone division may be more
valuable — and perhaps spun out — than other parts of IDT.
AltaVista also popped back into the Weblight with plans by Compaq to spin
it out from the motherboard into perhaps an IPO. Helping that along is a
deal AltaVista made with Microsoft that lands it real estate on MSN as the
search engine.
Tally ho:
ISDEX ® | 26-Jan-99 | % change | Point change | % change | |
The Internet Stock Index | close | from | from | from | |
www.isdex.com | 19-Jan-99 | 19-Jan-99 | 31-Dec-98 | ||
ISDEX | 338.61 | -5.2% | -18.39 | 18.1% | |
NASDAQ | 2,433.41 | 1.0% | 25.24 | 11.0% | |
DJIA | 9,324.58 | -0.3% | -30.64 | 1.6% | |
IDT Corp | IDTC | $14.44 | 20% | $2.38 | -6% |
Broadvision | BVSN | $41.63 | 10% | $3.63 | 30% |
Yahoo! | YHOO | $351.25 | 9% | $28.25 | 48% |
Doubleclick | DCLK | $93.50 | 6% | $5.56 | 110% |
Verio | VRIO | $27.63 | 6% | $1.63 | 23% |
Security First Technologies | SONE | $33.13 | 6% | $1.94 | 9% |
VocalTec | VOCLF | $15.56 | 5% | $0.75 | 38% |
Network Associates | NETA | $54.91 | 4% | $2.03 | -17% |
24/7 Media | TFSM | $37.00 | 3% | $1.25 | 32% |
ISS Group | ISSX | $67.25 | 3% | $2.25 | 22% |
America Online | AOL | $155.00 | 3% | $4.50 | 0% |
Netscape | NSCP | $65.81 | 2% | $1.31 | 8% |
RealNetworks | RNWK | $64.25 | 2% | $1.00 | 79% |
Mindspring | MSPG | $102.88 | 1% | $1.38 | 68% |
Broadcast.com | BCST | $138.75 | 1% | $1.38 | 81% |
Cisco | CSCO | $107.13 | 1% | $0.75 | 15% |
Axent | AXNT | $38.13 | 0% | $0.19 | 25% |
Sportsline USA | SPLN | $33.38 | 0% | $0.13 | 114% |
Broadcom | BRCM | $129.50 | 0% | -$0.50 | 7% |
CDnow | CDNW | $21.50 | -1% | -$0.31 | 19% |
Lycos | LCOS | $110.38 | -2% | -$2.56 | 99% |
Concentric | CNCX | $37.25 | -2% | -$0.88 | 12% |
Earthlink Network | ELNK | $76.63 | -3% | -$2.38 | 34% |
PSINet | PSIX | $33.00 | -4% | -$1.25 | 58% |
eBay | EBAY | $220.88 | -4% | -$9.00 | -8% |
@Home Network | ATHM | $109.88 | -5% | -$5.50 | 48% |
GeoCities | GCTY | $71.00 | -5% | -$4.00 | 111% |
Excite | XCIT | $101.38 | -8% | -$8.63 | 141% |
USWeb | USWB | $28.25 | -8% | -$2.44 | 7% |
Verisign | VRSN | $81.50 | -8% | -$7.13 | 38% |
N2K | NTKI | $15.00 | -8% | -$1.31 | 15% |
Onsale | ONSL | $45.50 | -9% | -$4.75 | 14% |
Infoseek | SEEK | $69.13 | -10% | -$7.94 | 40% |
Security Dynamics | SDTI | $25.88 | -10% | -$3.00 | 13% |
Egghead.com | EGGS | $20.00 | -11% | -$2.38 | -4% |
Exodus | EXDS | $84.25 | -11% | -$10.25 | 31% |
E*TRADE | EGRP | $80.13 | -11% | -$10.06 | 71% |
CMG Info | CMGI | $91.63 | -13% | -$13.38 | 72% |
CheckPoint Software | CHKPF | $46.94 | -15% | -$8.56 | 2% |
Spyglass | SPYG | $15.13 | -17% | -$3.00 | -31% |
Open Market | OMKT | $12.25 | -17% | -$2.50 | 5% |
Preview Travel | PTVL | $21.25 | -17% | -$4.50 | 15% |
Amazon.Com | AMZN | $115.09 | -18% | -$24.72 | 7% |
Inktomi | INKT | $129.81 | -18% | -$28.19 | 0% |
Beyond.com | BYND | $23.63 | -19% | -$5.63 | 14% |
Network Solutions | NSOL | $169.00 | -19% | -$40.88 | 29% |
CyberCash | CYCH | $16.38 | -20% | -$4.00 | 9% |
CNET | CNET | $80.13 | -20% | -$19.63 | 56% |
Open Text | OTEXF | $23.19 | -23% | -$6.75 | -5% |
Cyberian Outpost | COOL | $24.25 | -25% | -$8.25 | -12% |
The news and moves January 20 – January 26:
@Home (NASDAQ:ATHM) reports $19.2 million fourth quarter revenue, up 39
percent vs. 4Q97. The net loss before cost of distribution agreements and
merger
and acquisition related costs for the fourth quarter was $7.6 million, or
6 cents per share, compared to $9.7 million, or 8 cents per share a year ago.
Cable Internet subs grow 58 percent to 331,000 vs. previous quarter and
@Home service
launched in 15 new markets, total markets equals 59. Short take: losses
heavy. Long take: ATHM has $390 million cash. Remember, it took AOL 10
years to be profitable and achieve critical mass. We don’t think that may
be as long with @Home.
24/7 (NASDAQ:TFSM) plans a follow-on offering, 4 million shares total; 2
million from the company and 2 million from selling stockholders. Shares of
the ad network firm climb $1.50 to $37.25 per share today. In addition,
24/7 bought 60 percent of UK’s InterAd Holdings to be redubbed 24/7 Media
Europe.
XOOM.com (NASDAQ:XMCM – news), posted $3.5 million 4Q revenue, up 50
percent from the third quarter and 722 percent more than a year ago. Net
loss for the direct e-commerce/etailer was $2.9
million, or 29 cents a diluted share, excluding a $1.5 million nonrecurring,
noncash charge for the issuance of warrants. That compares to a net loss of
$3.1 million, or 35 cents per diluted share for the 3rd quarter of 1998, and a
net loss of $500,000, or 9 cents per diluted share for the 4th quarter of
1997.
Annual revenue reached $8.3 million, up 889 percent from the year earlier
with 1998 loss of $10.8 million, including a $1.5 million warrants charge.
Excite (NASDAQ:XCIT) reports fourth-quarter revenue up 163 percent vs. 4Q97 to
$54.4 million. That’s more revenue in one quarter than it posted for all of
1997. Loss narrows including charges o