The red-hot dot-com IPO has returned.
Blue Nile got the ball rolling in May, but at least the online jeweler is profitable.
The latest hot IPOs — Blackboard and Salesforce.com
— more closely resemble their late-1990s predecessors in that they are barely profitable, if profitable at all.
Blackboard lost $1.4 million last year, but at least it’s heading in the right direction: the company lost $41.7 million a year earlier. Salesforce, today’s hot IPO, registered a small profit last year, but that was due largely to a property lease deal. Still, it too is growing fast.
It appears investors have rediscovered their appetite for risk.
Stocks posted strong gains Wednesday on falling oil prices and optimism ahead of second-quarter earnings reports.
The Nasdaq surged 26 to 2020, the S&P 500 rose 9 to 1144, and the Dow climbed 84 to 10,479. Volume rose to 1.44 billion shares on the NYSE, and 1.82 billion on the Nasdaq. Advancers led 22-9 on the NYSE, and 20-10 on the Nasdaq. Upside volume was 80% on the NYSE, and 83% on the Nasdaq. New highs-new lows were 177-35 on the NYSE, and 109-35 on the Nasdaq.
After the close, Micron beat earnings estimates, but revenues came in light. Cognos
beat estimates and raised guidance, and AT&T
warned.
During the day, 3Com fell 5% despite beating estimates.
Telecom and networking stocks enjoyed another strong day. Among the winners were Avanex , Juniper
and Ciena
.
eBay climbed on an acquisition.
QSound jumped 9% on a deal with Qualcomm
.
FSI gained 5% on its results.
AT&T edged higher after abandoning local phone service efforts in seven states.
InterVoice fell 18% on its results.
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