Internet Market Close Report for 1998.05.26 | Internet News
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Internet Market Close Report for 1998.05.26

Written By
Steve Harmon
Steve Harmon
May 26, 1998
2 minute read
































 
26-May-98
point change
% change

ISDEX
138.05
-7.07
-4.87%

ISDEX Price Wtd.
1,411.27
-81.92
-5.49%

NASDAQ
1,778.09
-26.91
-1.49%

DJIA
8,963.73
-150.71
-1.65%

  • Netscape (NASDAQ:NSCP) beats Wall Street’s gloomy forecast with its first quarter net income coming in at breakeven vs. an expected loss of $0.10 per share. It decides to take the loss hit for January with a monthly loss of $54.2 million for restructuring and the launching of its Netcenter Web site as a portal.

    Notably, the Internet software pioneer posts $127.2 million for the three months ending April 30, 1998 vs. $120.5 million last year. Product revenue is down 14% to $77 million while service revenue grows 64% to $50.2 million. Our conclusion: as we said back in January – focus on the Web site business. But now we add this – focus on professional services. Between those two, with server sales also, Netscape looks to have a multiple revenue stream for the future.

  • CMG Information Services (NASDAQ:CMGI) drops 11.6% to $43.25 per share after it rescinds its stock repurchase program. CMG hasn’t bought back any shares for 12 months so the news seems overblown by our view. We’d rather see it put its cash to work with making investments than buying back shares. It owns pieces of or all of more than 20 Internet firms including Lycos (NASDAQ:LCOS) and GeoCities. Its LCOS stake also may explain the drop since the market in general took a hit today.

  • Intuit (NASDAQ:INTU) gets an initial “buy” rating from Deutsche Morgan. We think Intuit has potential to be a Web-based leader in financial services but that it may require “thinking out of the box” (applications) and more Web-based services to get there.




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