IPOs Steal the Show

Three hot Internet IPOs added fuel to the fire on Wednesday, as specific
Internet issues continued zooming ahead.

Andover.net, Agency.com, and
NetRatings contributed to the surge, despite Yahoo! putting somewhat of a
damper on the party. GoTo.com (GOTO)
was added to the ISDEX and saw its shares rally 5-1/2 higher to 92-3/16.

internet.com’s Internet Stock Index climbed 2.94, or 0.37 percent, to 796.61, the Nasdaq
Composite lost its record pace, closing down 0.84 to 3586.08 and the Dow
Jones industrial average gave up 38.53 to 11068.12.

Andover.net (ANDN),
a destination for products, news and online tools for Linux and Open Source
communities, raised $72 million after pricing 4 million shares at $18 per
share. In today’s trading, ANDN shares climbed 45-3/8, or 250 percent, to

Agency.com (ACOM)
saw its shares surge 50, or 192 percent, to 76. The Internet consulting firm
priced 5.9 million shares at $26 per share.

NetRatings (NTRT)
jumped 11 to 28. NTRT priced 4 million shares at $17 each. The company
measures Internet traffic through a partnership with Nielsen Media Research.

Exodus Communications (EXDS)
added 21-1/16 to 165-9/16. Merrill Lynch’s Henry Blodget and Sofia Ghachem
rolled out coverage with a “buy” rating and a $200 price target.

In a note
to clients, the tandem wrote: “the $18 billion web hosting and content
delivery markets should create over $70 billion in market cap by 2003. We
expect Internet pure-plays to account for about $30 billion. Exodus is a
category killer in web hosting and network management solutions. We believe
the company is one of the best-positioned players to consolidate this market
and rapidly move upstream into value-added services.”

Digital Island Inc. (ISLD)
soared 45-5/16 to 114-15/16 after
Sun Microsystems Inc. (SUNW)
announced it was taking a minority stake in the networking company.

In the business-to-business sector,
Internet Capital Group (ICGE)
gained 43-5/16 to 213-5/16. The holding company is set to receive a $50
million investment from AT&T Corp. (T) and a
$20 million investment from Internet Assets. Shares of ICGE will split
2-for-1 on Monday.

VerticalNet (VERT)
climbed 22 to 132. The creator and manager of 53 vertical industry
communities is partially owned by Internet Capital Group (36%).

internet.com’s, Luke Fronefield, will host a two-part interview with VERT’s
CEO, Mark Walsh, beginning Thursday.

gave back yesterday’s gains, falling 28-3/8 to 319-5/8.

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