Internet Market Close Report for 1999.02.05

The technology shares selloff continues as investors looking for a reason to
take profits or mull over early January gains can stay on the sidelines. Part of
the Pepto-Bismal moment came courtesy of the Federal Reserve’s recent meeting,
although it left rates unchanged, the fact that it met always spooks half of
Wall Street.

With Internet earnings better than expected (or losses narrowed) for fourth
quarter now reported by the big names in the Internet space we think the market
may be overreacting to broad market pressure.

Today’s snapshot:

  05-Feb-99 point change % change
ISDEX 345.30
-5.38 -1.53%
NASDAQ 2,373.62 -36.45 -1.51%
DJIA 9,304.24 -0.26 0.00%

  • MCI WorldCom (NASDAQ:WCOM) teams up with AOL’s CompuServe unit to provide a
    personalized news page for MCI WorldCom’s consumer Internet subscribers. AOL
    stock takes a hit, despite the fact AOL owns CompuServe. Have people forgotten
    AOL owns it, that even a rival to AOL dialup may benefit AOL if AOL’s content is
    the heart of the service.

  • NetManage (NASDAQ:NETM) okays a 2 million share buyback, adding to the 4
    million share buyback authorized. NETM bought back 2 million shares in fourth
    quarter. The PC connectivity firm posted $0.12 EPS 4Q98. For 1998 it posted
    $0.19 loss per share, however.

  • Microsoft (NASDAQ:MSFT) and BET Holdings launch Urban Express, a search
    engine they say is aimed at the black and urban Internet sites. The future is
    vertical, so says we.

    Harmon’s Hotwatch ’99 – the 10 stocks to watch in the
    Internet space – last year’s watch group was up more than 300%

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