Internet Stocks Stage Late-Day Turnaround

After being down across the board going into the half-way point of Wednesday’s session, Internet stocks staged a strong rebound late in the day as all the major market indices posted a strong recovery.’s Internet Stock Index recovered to close up 23.04, or 4.2 percent, to 571.78, the Dow Jones industrial average climbed 69.02 to 10,955.13 and the Nasdaq Composite jumped 48.66 to 2,533.78.

Some of the day’s big gainers included (PCLN) whose shares jumped 17-3/16 to 151-3/16 after being down as low as 120-1/8.

The company reported better-than-expected first quarter results and said it added 531,000 new customers in the quarter. That prompted Goldman Sachs to raise its 12-month price target to $150 and Warburg Dillon Read raised its target to $142.

Online software retailer Inc. (EGGS) climbed 1-3/16 to 14-11/16 after reporting a narrower fiscal fourth-quarter loss. Its loss shrunk to 50 cents a share, below analysts’ estimates for a 56-cent loss. Revenues climbed to $42.3 million from $26.6 million.

Other strong gainers included @Home Corp. (ATHM) which jumped 19-1/4 to 154-15/16 and merger partner Excite Corp. (XCIT) soared 21-9/16 to 159-3/4.

Infoseek Corp. (SEEK) soared 10-3/16 to 55-1/8. Warburg Dillon Read raised its rating on the company to a “buy” from “hold.”

Online community Inc. (MINE) slumped 2-3/16 to 56 after reporting its first-quarter loss grew to 91 cents a share from 28 cents a share a year ago.

Other losers included domain registrar Network Solutions Inc. (NSOL) which dropped 1-5/16 to 68-3/16 after slumping as low as 60.

The U.S. Department of Justice is looking into whether the company violated antitrust laws when it claimed ownership rights of customer names and addresses it gained under its exclusive government contract.

The day’s big IPO was NorthPoint Communications Inc. (NPNT). The Digital Subscriber Line provider’s shares soared 16-1/4 to 40-1/4 on their first day of trading. The company sold 15 million shares at $24 each late Tuesday, raising $360 million.

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