After a rally early in the day, Internet shares, as well as the overall
market, fell by the end of the trading day.
internet.com’s Internet Stock Index was down 3.86, or 0.75 percent, to
508.77, the Nasdaq Composite fell 30.64 to 2,774.96 and the Dow Jones
industrial average was off 127.91 to 11,198.13.
Shares of Cisco Systems Inc. (CSCO)
were up 5/16 to 68-15/16. Thursday the company announced blockbuster
deals, by purchasing Cerent Corp. and Monterey Networks for $7.4 billion in
stock. The deal will allow Cisco to build-out its fiber-optic technology.
The news was good for
JDS Uniphase (JDSU)
, which rose 2-15/16 to 115-1/2. The company develops components for
fiber-optic networks. James Parmelee of CS First Boston made positive
comments on JDS Uniphase.
Inktomi Corp. (INKT)
fell 4-15/16 to 115-1/16, even though an analyst with SG Cowen put a
“buy” rating on the stock.
As for the Internet leaders, America Online
Inc. (AOL),
declined 3-1/8 to 100-1/8, Yahoo! (YHOO)
fell 5-7/8 to 152-11/16, and Amazon.com (AMZN)
dropped 4-5/16 to 128-9/16.
Web community Xoom.com Corp. (XMCM)
was down 2-3/16 to 38-1/2. The company purchased Private One Inc.,
which develops secure email technology. The technology will be used for
Xoom.com’s e-commerce initiatives. The terms of the deal were not
disclosed.
PSINet Inc. (PSIX)
was unchanged at 51-3/8 and Transaction Network Services Inc. (TNI)
was up 3/16 to 46-1/8. Allegations of insider trading have brought PSINet’s
$720 million purchase of TNI under review.
CMGI Inc. (CMGI)
had jumped 2-3/8 to 87-5/16 after Prudential Security’s Paul
Merenbloom reiterated his “strong buy” rating.
Net2Phone Inc. (NTOP)
continued its recent run-up Thursday, climbing another 5-13/16 to
75-15/16. Shares continued to benefit from Net2Phone’s deal with Sprint
Corp. to offer low-cost phone calls to Asia.
Priceline.com (PCLN)
rose 7-7/16 to 72-5/8. An analyst at DLJ made positive comments on the stock.
The IPO market was strong.
Imagex.com (IMGX)
surged 6-15/16 to close at 13-15/16. The company provides online
printing services for businesses. The underwriter is Volpe Brown Whelan & Co.
Bamboo.com (BAMB)
soared 10-9/16 to 17-9/16. The company develops multimedia
walk-throughs for selling homes. The underwriter is Prudential Securities.
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