A negative earnings report hit IBM Corp. this morning and the rest of the blue
chips – which did manage to improve somewhat by the end of the day. Internet stocks were relatively unaffected and managed to finish on the plus side.
internet.com’s Internet Stock Index rose 5.50, or 1 percent, to 555.76, the
Nasdaq Composite was up 15.36 to 2,803.49 and the Dow Jones industrial
average had fallen 96.57 to 10,295.79. Much of that Dow drop was due to
IBM, which is a Dow component.
Among the session’s winners was America Online
Inc. (AOL),
up 6-1/16 to 124-1/16. The company reported earnings of 15 cents a share in
its first quarter, beating analysts’ 13-cent projections. The company also
announced a major deal with Gateway
Computer Inc. (GTW).
AOL will invest $800 million in cash and stock in the direct computer
retailer and the two companies also signed a distribution agreement aimed
at getting more Gateway buyers to sign up with AOL.
Also, Jefferies & Co. Thursday raised its price target by $8 to $180 for
AOL.
Wit Capital (WITC)
fell 5/16 to 16-11/16. The company reported a loss of 8 cents per
share in it latest quarter, which compares to a loss of 33 cents in the
same quarter a year ago. The First call estimate was for a loss of 13
cents.
PurchasePro.com (PPRO)
rose 2-3/8 to 38. The company signed a marketing deal with Office
Depot to use the PurchasePro.com business-to-business platform.
Aware Inc. (AWRE)
had soared 11-5/8 to 34-1/2. The maker of Digital Subscriber Line
technology sealed a development and licensing deal with chip giant Intel Corp. (INTC)
.
Other big gainers included
CNET (CNET)
up 3-1/16 to 53-9/16, Exodus
Communications (EXDS)
up 6-5/16 to 73-1/2, Juniper
Networks (JNPR)
up 11-1/4 to 258-3/2, MP3.com Inc. (MPPP)
climbing 1-9/16 to 38-7/16 and Verisign Inc. (VRSN) up 8-7/16 to
113-5/8.
E-Loan (EELN)
was down 7/8 to 18-7/16. The company purchased Flexemortgage.com,
which is a major source for flexible mortgages in the UK.
Corporate e-mail provider Critical Path Inc. (CPTH)
was off 3 to 47 after announcing it will acquire ISOCOR for $287
million in stock. That company also offers a variety of messaging
solutions.
Scient (SCNT)
was down 1/4 to 99-1/2. The company, which is a service provider for
e-commerce sites, reported a loss of 4 cents per share, comparedto an 11
cent loss in the year ago quarter. The results were in line with First
Call estimates.
Stamps.com Inc. (STMP)
was up 1-1/2 to 37-1/8 after signing a three-year marketing deal with
AOL. AOL also agreed to invest in the online postage provider as part of
the $56 million agreement.
Vignette Corp. (VIGN)
soared 38-3/4 to 157-13/16. The provider of relationship management
and Web site publishing software said its third-quarter loss shrunk to $4.8
million, or 19 cents a share, compared to $6.5 million, or 35 cents a
share, a year ago.
Marimba Inc. (MRBA)
had fallen 2-3/4 to 32-7/8. The company reported a loss of 1-cent a
share compared to 15 cents a year ago. Analysts had forecast a 5-cent loss.
Lycos Inc. (LCOS)
was off 1-7/32 to 55-9/16. Jefferies initiated coverage of the search
engine and set a $73 target.
On the IPO front, Aether Systems
Inc. (AETH)
surged 32-7/16 to 48-7/16. The company develops wireless technology
for the financial industry. The IPO was priced at $16 per share and the
lead underwriter was Merrill Lynch.
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