Internet stocks went quietly Wednesday, although a few of the sector’s leaders turned in solid gains, benefitting from earnings surprises and acquisition news.
Internet.com’s Internet Stock Index closed up 7.12, or 1.24 percent, to 580.05, the Nasdaq Composite ended up 19.05 to 2,577.41 and the Dow Jones industrial average added 50.44 to 10,887.39.
America Online Inc. (AOL) erased gains of more than 5 to close up only 15/16 to 135. AOL Wednesday met with analysts and investors to talk about its future plans. No major announcements came out of the meeting, although speculation was AOL would unveil a new DSL service in partnership with several regional telephone companies.
Redback Networks (RBAK) turned in another solid performance Wednesday, closing up 6-3/8 to 90-1/2. The company’s shares rocketed more than 64 in their first full day of trading Tuesday.
Shares of Healtheon Corp. (HLTH) rocketed 24-3/8 to 80-1/4. The company confirmed it is in merger talks with WebMD.
eBay Inc. (EBAY) gained 7-1/4 to 196-13/16. 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.
Merrill Lynch Internet analyst Henry Blodget raised his price target to $170.
IDT Corp. (IDTC) added 7/8 to 28-1/8. The company announced its Net2Phone subsidiary, which offers Internet telephony services, will sell up to $50 million in stock in an initial public offering.
Online community (TGLO) fell 2-1/16 to 20-1/16 after saying it plans to sell another 6 million shares at $20 each.
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