Yesterday, we found out that the seventh largest mutual fund complex, Janus Capital, has caught Internet religion. In filings with the SEC, Janus disclosed that it made purchases of $3.2 billion in Net stocks during the first seven months of 1999.
What are the favorites? They are the dominant market leaders, such as
eBay (EBAY),
Amazon.com (AMZN), Yahoo! (YHOO), and Excite@Home (ATHM).
Last year, the fund had but one Net stock:
American Online (AOL).
In the SEC filings, Janus Chairman Tom Bailey wrote a letter to shareholders, saying, “Without question, the Internet is changing the way companies do business, offering them new distribution channels, increasing their productivity and, in many cases, helping them gain a competitive edge.”
Internet stocks definitely had the competitive edge in the past week. ISDEX climbed 2.42% despite a fall-off yesterday.
Here’s a look at the numbers:
| ISDEX . | 19-Aug-99 | % change | |
|---|---|---|---|
| The Internet Stock Index | close | from | |
| www.isdex.com | 13-Aug-99 | ||
| close | |||
| ISDEX | 461.83 | 2.42% | |
| NASDAQ | 2621.68 | -0.61% | |
| DJIA | 10961.62 | -0.11% | |
| Amazon.com | AMZN | 106.13 | 8.92% |
| American Online | AOL | 96.00 | -0.90% |
| Ariba | ARBA | 106.00 | -16.21% |
| At Home | ATHM | 37.25 | 0.68% |
| Axent Technologies | AXNT | 13.56 | 1.38% |
| Broadcom Corp | BRCM | 125.88 | 4.85% |
| Broadvision | BVSN | 91.94 | -1.67% |
| Beyond.com Corp | BYND | 15.50 | -8.15% |
| CDNow Inc. | CDNW | 15.13 | -0.79% |
| Checkpoint Software | CHKP | 67.25 | -3.24% |
| CMGI Inc | CMGI | 78.75 | -3.37% |
| Concentric Networks | CNCX | 22.47 | -3.35% |
| CNET Inc. | CNET | 38.25 | 7.94% |
| Cisco | CSCO | 62.25 | -2.06% |
| Cybercash | CYCH | 9.31 | 1.33% |
| Doubleclick | DCLK | 82.94 | 0.69% |
| eBay | EBAY | 113.75 | 16.07% |
| E*TRADE GROUP | EGRP | 25.44 | -2.62% |
| Earthlink Networks | ELNK | 44.56 | -7.41% |
| Exodus Communications | EXDS | 72.81 | 8.27% |
| Go2Net Inc. | GNET | 63.28 | -2.65% |
| Healtheon | HLTH | 34.00 | -1.81% |
| Inktomi Corp | INKT | 109.19 | -0.74% |
| Infospace.com | INSP | 43.56 | 4.34% |
| ISS Group | ISSX | 24.69 | -4.58% |
| iVilliage Group | IVIL | 40.88 | 4.49% |
| Juniper | JNPR | 207.00 | -3.16% |
| Lycos Inc. | LCOS | 41.69 | 9.89% |
| Mindspring | MSPG | 29.94 | 4.82% |
| Network Associates | NETA | 16.44 | -0.74% |
| Network Solutions | NSOL | 60.88 | 10.19% |
| Open Market Inc. | OMKT | 12.38 | 1.06% |
| Onsale Inc. | ONSL | 17.63 | 25.37% |
| Priceline.com | PCLN | 66.50 | 0.00% |
| Prodigy Comm Inc. | PRGY | 18.00 | 4.35% |
| PSINet | PSIX | 46.22 | 7.49% |
| Preview Travel | PTVL | 16.94 | -8.43% |
| RealNetworks | RNWK | 78.56 | 4.40% |
| Secure Dynamics | SDTI | 19.88 | 4.29% |
| Infoseek Corp. | SEEK | 32.00 | 3.23% |
| Security First | SONE | 34.88 | 19.25% |
| Sportsline USA | SPLN | 20.56 | 2.80% |
| StarMedia | STRM | 46.25 | 13.85% |
| 24/7 Media Inc. | TFSM | 30.94 | 3.56% |
| TicketMaster-City Search | TMCS | 28.81 | -3.36% |
| USWeb Corp | USWB | 20.25 | 10.58% |
| Verio Inc. | VRIO | 68.38 | 1.87% |
| Verisign Inc. | VRSN | 88.25 | 6.33% |
| Xoom.com Inc. | XMCM | 46.50 | 21.57% |
| Yahoo Inc. | YHOO | 139.19 | 4.80% |
- 99.08.17 It’s starting to happen that is, Internet companies making money.
Lycos (LCOS) reported earnings of one cent per share for the fourth quarter; Wall Street expected break-even. In all, the company had $605,000 in operating profits, compared to a loss of $703,000 a year ago. Further, revenues soared from $45.1 million from $19 million last year. Revenues should continue to grow strongly, as Lycos signed a $135 million e-commerce deal with WingspanBank.com.
- 99.08.17 Excite@Home (ATHM) and Cox (COX) announced a deal to invest $85 million in
Tickets.com. The move is an attempt to capture the fast-growing market for ticketing away from Ticketmaster Online CitySearch (TMCS). In the deal, Tickets.com agreed to pay Excite@Home $25 million for integrating ticketing on the Excite@Home portal site. The deal should help boost the chances for the upcoming Tickets.com IPO. Currently, Ticketmaster Online CitySearch is integrating with Lycos.
- 99.08.19 Stocks of Onsale (ONSL) and Egghead.com (EGGS), which recently announced a merger, have been languishing, that is, until yesterday. Onsale announced it expects strong growth for the rest of the year. The company sees sequential-quarter revenue growth of 8%-12% for Q3 and 15%-20% forQ4. Again, this is further evidence the Net will have a Merry Christmas. Unfortunately, for Onsale, margins are expected to be 5% or so, compared to 9% a year ago.
- 99.08.17 What’s good for
Microsoft (MSFT) is also good for StarMedia (STRM). This week, Microsoft announced that it is purchasing 27 percent of the No. 1 cable company in Brazil, Globo Cabo. This should help accelerate the Net in Latin America, which means more demand for portals. So far, StarMedia is the first-mover portal in the region. Also, StarMedia announced an exclusive deal with LatinGrocer, the leading online vendor of Hispanic foods.
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