ISDEX May Find Boost From Internet Revenue Study

The big news today is the $301 billion the Internet produced in revenue last year, about 1 percent of total U.S. GDP. The revenue came from Web sales of books, music, toys, etc. $58 billion of the total was stock trading and travel, according to the study from the University of Texas and Cisco.

As the news spreads today it may have a positive effect on the Internet sector if investors can get over interest rate concerns (which they may not).

For the period May 26 through June 9 ISDEX (the Internet Stock Index) went sideways. A new addition to ISDEX topped the list of percent gainers, StarMedia (NASDAQ:STRM), up 42% from May 26 and 150% from its $15 IPO price.

For those north (or west or east) of the border unfamiliar with STRM, it provides Web search and guide services across Latin. I think StarMedia has the chance to be the Yahoo! of Latin America, although Yahoo! just inked a marketing deal with Fox’s Latin TV division for the region.

Other threats include AOL/Cisneros Group’s adventuras en America del Sur, if you can excuse my Spanglish.

Let’s go to the stats:



















































































































































































































































































































































































































































































ISDEX ®

 

09-Jun-99

% change

Point change

% change

The Internet Stock Index

 

close

from

from

from

www.isdex.com

 

 

26-May-99

26-May-99

31-Dec-98

 

 

 

 

 

or 1999 IPO

ISDEX

 

505.06

-0.03%

-0.14

49.9%

NASDAQ

 

2,519.35

3.8%

92.17

14.9%

DJIA

 

10,690.29

-0.1%

-11.87

16.4%

 

 

 

 

 

 

StarMedia

STRM

$ 37.50

42%

$11.00

150%

ISS Group

ISSX

$ 29.63

27%

$6.38

8%

Beyond.com

BYND

$ 23.69

25%

$4.75

14%

Exodus

EXDS

$ 91.19

24%

$17.75

184%

Security First Technologies

SONE

$ 38.88

21%

$6.75

155%

Verio

VRIO

$ 61.38

20%

$10.25

174%

Infospace.com

INSP

$ 46.25

20%

$7.56

143%

Broadvision

BVSN

$ 58.25

19%

$9.38

82%

CheckPoint Software

CHKPF

$ 52.19

19%

$8.25

14%

Verisign

VRSN

$ 58.63

11%

$5.75

98%

24/7 Media

TFSM

$ 31.25

11%

$3.00

12%

Open Market

OMKT

$ 13.25

10%

$1.25

13%

Infoseek

SEEK

$ 46.44

10%

$4.31

-6%

Concentric

CNCX

$ 35.06

10%

$3.06

111%

Broadcom

BRCM

$ 108.75

9%

$9.19

80%

Go2Net

GNET

$ 107.88

7%

$6.63

510%

Prodigy

PRGY

$ 24.50

7%

$1.50

63%

Doubleclick

DCLK

$ 96.13

7%

$5.88

332%

Broadcast.com

BCST

$ 111.50

6%

$5.94

192%

eBay

EBAY

$ 183.00

5%

$8.69

128%

CMG Info

CMGI

$ 105.25

5%

$4.63

295%

Xoom.com

XMCM

$ 48.88

5%

$2.13

48%

Cisco

CSCO

$ 113.75

4%

$4.63

23%

Yahoo!

YHOO

$ 146.38

4%

$5.50

24%

USWeb

USWB

$ 25.88

3%

$0.81

-2%

VocalTec

VOCLF

$ 10.81

3%

$0.31

-4%

Egghead.com

EGGS

$ 11.00

3%

$0.31

-47%

CDnow

CDNW

$ 17.75

2%

$0.31

-1%

Earthlink Network

ELNK

$ 50.25

0%

$0.25

-12%

Inktomi

INKT

$ 98.25

0%

$0.25

52%

Preview Travel

PTVL

$ 17.06

0%

$0.00

-7%

CNET

CNET

$ 52.38

0%

-$0.16

307%

Network Solutions

NSOL

$ 60.25

-1%

-$0.50

-8%

PSINet

PSIX

$ 43.63

-2%

-$0.75

109%

Network Associates

NETA

$ 14.25

-2%

-$0.25

-78%

RealNetworks

RNWK

$ 68.50

-2%

-$1.69

282%

Mindspring

MSPG

$ 71.78

-2%

-$1.78

18%

Sportsline USA

SPLN

$ 33.63

-3%

-$1.13

116%

CyberCash

CYCH

$ 12.81

-4%

-$0.56

-15%

Amazon.Com

AMZN

$ 114.00

-6%

-$6.94

6%

Ticketmaster-CitySearch

TMCS

$ 26.00

-6%

-$1.75

-54%

Onsale

ONSL

$ 17.19

-6%

-$1.19

-57%

Axent

AXNT

$ 11.88

-7%

-$0.88

-61%

America Online

AOL

$ 111.00

-8%

-$9.31

43%

Lycos

LCOS

$ 93.00

-9%

-$9.00

67%

E*TRADE

EGRP

$ 40.50

-9%

-$4.25

246%

Security Dynamics

SDTI

$ 17.00

-11%

-$2.06

-26%

Cyberian Outpost

COOL

$ 10.69

-14%

-$1.69

-61%

iVillage

IVIL

$ 41.19

-16%

-$7.81

72%

@Home Network

ATHM

$ 96.88

-22%

-$27.75

30%

Among the news and moves:

  • 99.06.08 – Infoseek (NASDAQ:SEEK) rockets 13% against the market downturn on news that Disney may acquire the 53% of SEEK it doesn’t own. Disney holds a warrant that allows it to acquire a majority but this move seems to indicate 100%. I think Disney should roll it up with Disney’s entire Internet basket and consolidate the brand under go.com (something I suggested when Disney first did the Infoseek investment last year).

    Also, with Disney Internet leader Jake Weinbaum leaving, some key Infoseek execs already gone, it may be better to have one captain and why not Mickey Mouse, or Steamboat Willie. You know what Wall Street really wants to see from Disney? Some imagineering with its Web efforts instead of the me-too portal model it has followed.

  • 99.06.08 – BackWeb (NASDAQ:BWEB) debuts with its IPO Wednesday, up 64% from pricing to $19 11/16 per share. BackWeb’s corporate software management services and information distribution provide key data flow to large corporations. A rival on the automated software distribution is Marimba (NASDAQ:MRBA), although BackWeb to me represents a more diverse data distribution play.
  • 99.06.07 – Internet Security Systems (NASDAQ:ISSX) is upgraded by BancBoston Robby Stephens to “buy” to take advantage of what it calls a recent selloff. I think the whole Internet security software sector looks sold off and worth another look. CheckPoint (NASDAQ:CHKP) and Security Dynamics (NASDAQ:SDTI) for two.
  • 99.06.04 – The most significant news is a Federal Court in Oregon ruling that AT&T/TCI cable lines carrying Internet traffic must be opened up to non-cable companies, a boon to ISPs such as AOL (NYSE:AOL), EarthLink (NASDAQ:ELNK) and MindSpring (NASDAQ:MSPG), all stocks on the up this week.

    Shares of cable Internet stocks fall with @Home (NASDAQ:ATHM) hit the hardest down 10% to $94.50 per share. AT&T (acquiring TCI, a majority owner of @Home) will inevitably fight the ruling in appellate court.

  • 99.06.03 – Xoom.com (NASDAQ:XMCM) agrees to acquire MightyMail for $25 million stock. MightyMail email helps companies create branded email products.
  • 99.06.03 – E*TRADE (NASDAQ:EGRP) makes s $1.8 billion stock offer for Web-based bank Telebanc. Investors react unfavorably, driving down EGRP 11.66% to $39 5/16 per share. E*TRADE goes for girth, same as its land-based banking rivals. But it hasn’t solidified enough lead in online investing to go after other areas yet in my view. In terms of stock trades I believe E*TRADE is fourth on the Web.

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