Internet Leaders Dominate News In Midsession

Internet stocks were mixed in midsession Wednesday, although many of the sector’s leaders were higher, benefitting from earnings surprises and acquisition news.

Internet.com’s Internet Stock Index was up 5.58, or .97 percent, to 578.51, the Nasdaq Composite was up 2.50 to 2,560.86 and the Dow Jones industrial average had climbed 26.55 to 10,863.50.

America Online Inc. (AOL) was up 3-1/8 to 137-3/16. AOL Wednesday was meeting with analysts and investors to talk about its future plans. Investors, expecting positive news from the meeting, were bidding up the stock.

AOL is also expected to unveil AOL Plus, its DSL service that it will offer in conjunction with several regional telephone companies.

eBay Inc. (EBAY) was up 6-1/2 to 196-1/2. The online auctioneer purchased Kruse International, an auctioneer of collectible cars as well as Billpoint, a provider of credit card processing services, for $275 million.

Lycos Inc. (LCOS) jumped 7 to 119-15/16 after trading as high as 122-7/8. The company late Tuesday reported better-than-expected quarterly earnings and announced a 2-for-1 stock split.

Merrill Lynch Internet analyst Henry Blodget raised his price target to $170.

IDT Corp. (IDTC) was up 1-3/4 to 29. The company announced its Net2Phone subsidiary, which offers Internet telephony services, will sell up to $50 million in stock in an initial public offering.

Shares of Healtheon Corp. (HLTH) had rocketed 16-13/16 to 72-11/16. The company confirmed it is in merger talks with WebMD.

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