While the general market was mixed, Internet shares ended strong, driven by a major announcement from Amazon.com, as well as
rumors about the possible sale of Excite@Home.
The ISDEX climbed 10.29, or 1.98 percent, to 529.41, the Nasdaq
Composite was down 27.35 to 2,728.90 and the Dow Jones industrial average
was down 62.05 to 10,213.48.
Excite@Home (ATHM)
surged 5-1/16 to 43-7/16. There are rumors of a deal involving AT&T
and AOL — which may involve the sale of Excite@Home. AOL (AOL)
was down 3/4 to 109-1/8.
Amazon.com (AMZN)
had jumped 15 to 80-7/8. The company Wednesday unveiled what will
essentially be a virtual online mall, allowing individuals and small
businesses to sell a variety of items to Amazon.com customers. The online
retailer will also handle all the billing services.
eToys Inc. (ETYS)
had climbed 6-1/4 to 65-7/8 after Goldman Sachs raised its rating to
“trading buy” from “market outperform.” The company also set an $80 price
target over the next 12 months.
USWeb/CKS (USWB)
was up 2-25/32 to 33-3/8. Microsoft agreed to invest $67.5 million in
the company, so as to create new application services.
Internet telephony software maker VocalTec Communications Ltd. (VOCL)
was up 1-1/4 to 14-1/4. The company announced it was teaming with Cisco Systems Inc. (CSCO)
to develop and market Internet telephone systems to service providers.
Network Solutions (NSOL)
had climbed 9-9/16 to 95-1/16. Lehman Brothers reiterated its “buy”
rating after the company resolved its long-running dispute with the U.S.
Department of Commerce.
Other strong movers included CMGI (CMGI)
up 2-3/8 to 100-5/16, VeriSign
(VRSN)
adding 1-1/4 to 104, Priceline.com (PCLN)
up 1-5/8 to 63 and DoubleClick (DCLK)
climbing 2-9/16 to 116-3/8.
On the IPO front, infrastructure company InterNAP Network Services Corp. (INAP)
debuted today. It surged 32-31/32 to 52-31/32. The company provides high-end Internet
access to such customers as Amazon.com and Nasdaq. The lead underwriter was
Morgan Stanley.
FTD.com (EFTD)
had a lukewarm IPO, with the stock increasing 5/8 to 8-5/8. FTD.com is
an online retailer of flowers and gifts. The lead underwriter was Bear
Stearns.
ShopNow.com (SPNW)
rose 11/16 to 12-11/16. The company develops e-commerce platforms for
merchants. The lead underwriter was Dain Rauscher Wessels.
NetSolve Inc. (NTSL)
soared 6 to 19. The company provides outsourcing services for computer
networks. The lead underwriter was Banc Boston Robertson Stephens.
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