Internet issues were pushed lower for the second straight day in wake of
skepticle future growth forecasts at Cisco Systems Inc. and profit taking by investors.
Still, a series of analyst reports and deal makings brought some Internet
internet.com’s Internet Stock Index lost 9.79, or 1.22 percent, to
795.18, the Nasdaq Composite jumped 50.27 to 3621.93 and the Dow Jones
industrial average gained 65.15 to 11225.32.
had a successful IPO debut, rising 3-1/4 to 14-1/4. The company issued 5
million shares at $11 per share. Banc of America Securities LLC acted as
managing underwriter for the offering. eCollege is a provider of technology
and services that enable colleges and universities to offer an online
environment for distance and on-campus learning.
Go2Net Inc. (GNET)
surged 11-3/4 higher to 99-1/16. The leading portal signed a three-year
licensing deal to bring Hasbro’s (HAS)
games to the Web site, games.com. Hasbro
and Go2Net will each share in the revenue generated from the sale of
advertising and sponsorship. Go2Net will also receive fees for Games.com
e-commerce transactions originating from Go2Net’s portal and properties.
Shares of RealNetworks Inc. (RNWK)
matured 5-1/2 to 155. Merrill Lynch analysts, Henry Blodget and Sofia
Ghachem initiated coverage on RealNetworks with an Accumulate/Buy rating and
a 12-18 month price objective of $200.
“RealNetworks has the potential to
become one of the top five digital media portals, in our view. RNWK ranks
among the top 15 content providers in terms of reach and has over 90 million
registered users- on par with leading portals such as Yahoo!” wrote Blodget
and Ghachem in a note to clients.
Cisco Systems Inc. (CSCO)
dropped 2-1/16 to 95-7/8 after slumping as low as 92-7/8 earlier in the
session. The maker of networking equipment said in a regulatory filing
“sales growth in future quarters may slow.” Immediately after the filing was
released, Cisco cautioned the warning wasn’t necessarily cause for alarm and
many analysts agreed, saying investors had initially overreacted.
CacheFlow Inc. (CFLO)
plunged 16-1/2 to 125. The company, which makes equipment to optimize Web
page delivery, reportd a fiscal second-quarter loss of $2.35 a share
compared to 62 cents a year ago. Revenues jumped 400 percent to
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