RedHat, AltaVista Make for Strong Net Finish

Positive analyst comments as well as the announcement that the last
top-tier portal will be going public had Internet stocks rising again on
Monday. Red Hat surprised analysts and investors in its earnings call, but
the reaction in its stock price was even more surprising.

internet.com’s Internet Stock Index gained 8.44, or 1.03 percent, to 828.66,
the Nasdaq Composite jumped 30.81 to 3783.87 after briefly crossing 3,800
earlier in the session, and the Dow Jones industrial plunged 113.16 to
11144.27.

In the business-to-business sector, Internet Capital Group (ICGE)
surged 22, or 18 percent, to 143-5/8. (Editors Note-
[email protected], interviewed ICGE’s CEO, Walter Buckley.
http://www.internetstockreport.com/reporter/article/0,1785,1941_262701,00.ht
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Ariba (ARBA)
gained 5-5/16 to 133-3/8 after the company announced that Tradex
Technologies Inc., a company Ariba plans to acquire for $1.86 billion, will
receive $60 million in investments.

Investors include American Express Bank Ltd. (AXP)
and Chemdex (CMDX)

Amazon.com (AMZN)
matured 2-15/16 to 97. Morgan Stanley analyst Mary Meeker, in an interview
with Barron’s, predicted stronger-than-expected holiday shopping would
benefit the e-tail giant. She said the company’s sales could approach $1
billion. Also, Amazon.com-backed grocery delivery service, HomeGrocer.com
filed to raise as much as $250 million through an initial public offering.
Currently public online grocer, WebVan
(WBVN)
added 7/16 to 19-1/4.

CMGI Inc. (CMGI)
rose 10-3/8 to 222-3/16. The holding company’s portal play, AltaVista, filed
for an IPO. The offering is expected to raise more than $300 million for the
last major portal to enter the public marketplace. CMGI also filed with the
SEC to sell up to $1 billion in securities.

VeriSign Inc. (VRSN)
rocketed 19-3/16 to 150-1/8. The Internet security company Monday purchased
Signio Inc. and Thawte Consulting for $1.3 billion in stock. The company
said the acquisitions will enhance its security and e-commerce offerings.

Shares of Red Hat (RHAT)
jumped 15-1/16 to 267-15/16. The company reported earnings early Monday
morning, missing estimates by a penny. First Call projected a loss of 4 cents
vs. an actual loss of a nickel. The Linux servicing company did however
announce a 2-for-1 stock split which added surprising momentum.

America Online (AOL)
added 2, closing at 87. Jefferies & Co. raised its 12-18 month price
target from $95 to $110.


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