Microsoft & Summer: Wall Street Taking Cues From Gates & States

A long time ago in a geekdom far, far away, MS-DOS quietly hummed along and
kept many a PC thumping to some unheard beat that only fans of serious late
night parties held at Radio Shack or Tandy could understand. No more.
MS-DOS’ offspring, Windows, and its overtures to the Web make for headlines
around the world. Presidents and kings send e-mail.


All of which hasn’t been lost in the Beltway, Board room, or Big Board. By
our reckoning, it’s the Internet opportunity that’s been fueling
Microsoft’s (NASDAQ:MSFT) market capitalization rise to north of $200
billion. Anti-trust allegations and consternation seem to have slowed that
steam down as Washington State’s biggest digital exporter’s attention has
been snagged by politicians and pork barrelers, which we think could open
windows (pun intended) of opportunity for rivals and others to attack the
beach head.


On the other hand, while we believe that this represents a speed bump on
Microsoft’s superbuyway, the softness in MSFT of late may only be a
footnote in the ongoing value chain of the great machine.


That’s the dramatic back drop to Wall Street’s drop the past week. Check
our latest tally:


ISDEX May 13 – 19












































































































































































































































































































































































































































































































Mecklermedia’s

 

19-May-98

% change

Point change

% change

ISDEX ®

 

close

from

from

from

Internet Stock Index

 

 

13-May-98

13-May-98

31-Dec-97

 

 

 

 

 

 

ISDEX Geometric Avg.

 

149.93

-4.6%

-7.31

50.1%

ISDEX Price Wtd.

 

1,549.69

-4.1%

-66.81

51.0%

NASDAQ

 

1,845.87

-1.1%

-20.31

17.5%

DJIA

 

9,054.65

-1.7%

-157.19

14.5%

 

 

 

 

 

 

CMG Info

CMGI

$ 51.00

5%

$2.38

237%

CNET

CNWK

$ 39.69

4%

$1.63

35%

Broadvision

BVSN

$ 15.84

4%

$0.59

144%

Netscape

NSCP

$ 27.88

3%

$0.75

14%

Versant Object Technologies

VSNT

$ 5.63

2%

$0.13

-59%

Cyberguard

CYBG

$ 13.75

2%

$0.25

144%

Mindspring

MSPG

$ 61.81

2%

$1.00

84%

Mecklermedia

MECK

$ 20.88

1%

$0.25

-16%

Security Dynamics

SDTI

$ 25.00

1%

$0.25

-30%

Onsale

ONSL

$ 30.13

1%

$0.19

67%

Axent

AXNT

$ 25.84

-1%

-$0.22

50%

CyberCash

CYCH

$ 17.59

-1%

-$0.16

39%

IDT Corp

IDTC

$ 32.75

-1%

-$0.31

62%

Intuit

INTU

$ 49.38

-1%

-$0.50

20%

Excite

XCIT

$ 61.00

-2%

-$1.25

103%

America Online

AOL

$ 87.69

-3%

-$2.31

94%

Amazon.Com

AMZN

$ 90.38

-3%

-$2.50

50%

Network Associates

NETA

$ 66.63

-3%

-$1.88

26%

VocalTec

VOCLF

$ 17.38

-3%

-$0.50

-15%

Spyglass

SPYG

$ 10.81

-3%

-$0.31

119%

Egghead.com

EGGS

$ 9.19

-3%

-$0.31

41%

Security First Net Bank

SFNB

$ 10.38

-3%

-$0.38

43%

CheckPoint Software

CHKPF

$ 30.50

-4%

-$1.13

-25%

E*TRADE

EGRP

$ 23.00

-4%

-$0.94

0%

Concentric

CNCX

$ 22.50

-4%

-$1.00

154%

@Home Network

ATHM

$ 39.06

-5%

-$1.88

55%

Yahoo!

YHOO

$ 118.16

-5%

-$5.84

71%

Network Solutions

NSOL

$ 41.47

-6%

-$2.47

216%

WavePhore

WAVO

$ 13.75

-6%

-$0.88

47%

Verisign

VRSN

$ 35.88

-6%

-$2.38

156%

NewsEdge

NEWZ

$ 12.50

-7%

-$0.88

-7%

PairGain

PAIR

$ 17.31

-7%

-$1.25

-11%

Infoseek

SEEK

$ 30.13

-7%

-$2.19

180%

Broadband Technologies

BBTK

$ 7.50

-7%

-$0.56

82%

Sportsline USA

SPLN

$ 30.75

-7%

-$2.38

186%

Secure Computing

SCUR

$ 11.00

-7%

-$0.88

-7%

Lycos

LCOS

$ 63.22

-8%

-$5.22

53%

CheckFree

CKFR

$ 22.63

-8%

-$2.06

-16%

Open Text

OTEXF

$ 16.50

-9%

-$1.63

23%

RealNetworks

RNWK

$ 25.44

-9%

-$2.56

83%

Open Market

OMKT

$ 15.22

-10%

-$1.66

58%

Metricom

MCOM

$ 10.25

-10%

-$1.13

6%

CDnow

CDNW

$ 21.47

-10%

-$2.41

34%

Doubleclick

DCLK

$ 36.50

-10%

-$4.13

115%

USWeb

USWB

$ 20.94

-10%

-$2.44

123%

Earthlink Network

ELNK

$ 53.25

-12%

-$6.94

107%

CKS Group

CKSG

$ 19.50

-12%

-$2.63

38%

Cylink

CYLK

$ 11.06

-12%

-$1.56

13%

PSINet

PSIX

$ 11.19

-13%

-$1.69

118%

N2K

NTKI

$ 18.44

-17%

-$3.81

26%

TOTAL

 

1,549.69

-4%

-67.69

51%

SIMPLE AVERAGE

 

30.99

-4%

-1.35

51%


  • 05.19.98: Excite (NASDAQ:XCIT) files to sell 1.35 million shares of
    XCIT to pay for its $70 million deal with Netscape and to raise working
    capital. The move follows Lycos’ filing of 3 million shares on May 14. We
    think all the search and guide sites in the top tier could (and should) tap
    the public market to cash up for the coming battle with Microsoft in the
    search space.

  • 05.18.98: Mecklermedia (NASDAQ:MECK), The Internet Media Company and
    publisher of this report, agrees to acquire ISPCON trade show producer and
    BoardWatch magazine publisher for $29.5 million cash and stock.
    The buys help solidify Mecklermedia’s leading event and information source
    status for Internet business professionals. Included in the acquisitions
    are the Web sites Ispcon.com and Boardwatch.com, which will be integrated
    with Mecklermedia’s Web resource network Internet.com.

  • 05.15.98: Metricom (NASDAQ:MCOM) narrows its losses and doubles its
    revenues with $3.6 million first quarter revenue vs. $1.8 million 1Q97;
    loss reaches $11.7 million or $0.69 loss per share vs. $13.9 million or
    $1.03 loss per share. The wireless Internet access provider spent more
    heavily on product costs, and while it narrowed losses, it’s still in
    buildout mode. Its Ricochet access service is available in San Francisco
    Bay, Seattle, and Washington, D.C., on a few corporate campuses, and 11
    major airports in the U.S.

  • 05.14.98: Pointcast finally files to go public with 3.75 million
    shares at a target of $11 per share. We think this could be one of those
    high-profile Internet stock offers along the lines of Netscape, Yahoo! or
    Broadcom that rocks Wall Street’s world and alters the investmentscape.
    Look for our own unique analysis next week, significant in that I first saw
    Pointcast in 1994 when one of its creators showed me it pre-alpha. There
    must have been 5 employees at the time. I thought it was revolutionary
    then, what about now? See ISR May 19 for our analysis.

  • 05.13.98: USWeb (NASDAQ:USWB) agrees to acquire Gray Peak
    Technologies (GPT) in a stock deal valued between $80 million to $100
    million. The GPT acquisition will allow USWeb to offer more network
    integration, network security, and voice over IP. We think intranets will
    increasingly use the Web protocols for a range of network-based
    communications and distribution. As such, this positions USWeb as a better
    solution provider.

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