Between the Asian flu and Zippergate it’s no wonder the broad market is in a tailspin, causing the Dow to bow nearly 300 points and 200 points in a single day, ending the week off a more mild 25 points.
While the big board got slammed ISDEX gained 8% on a price-weighted basis ending last week’s selloff and perhaps signaling that there’s a little strength left for Internet stocks.
We expect some more market volatility in the next eight to ten weeks (heavy roller coaster action) and then a possible recovery as the holiday season approaches and e-commerce makes headlines. If you think last Christmas was e-tail heaven this Christmas could be huge. It will be commonplace for tens of millions to buy a gift over the Web.
Who could benefit from that? AOL (NYSE:AOL), Yahoo! (NASDAQ:YHOO), Amazon (NASDAQ:AMZN), Excite (NASDAQ:XCIT), Lycos (NASDAQ:LCOS), CDnow (NASDAQ:CDNW), ONSALE (NASDAQ:ONSL), Egghead.com (NASDAQ:EGGS), and Cyberian Outpost (NASDAQ:COOL), to name a few.
Before we get too far ahead of the action, let’s take a look at the play-by-play from August 4 to August 11. More than 35 of the 50 stocks in ISDEX ended the period with gains, a bullish indicator in our view. Last week more stocks ended down. This signals that there’s a little more leg room for the group, especially since ISDEX is well off the highs it reached in April. Check the handy table:
| ISDEX – Top 10 Highs Since Inception April, 1996 | |||||
date | open | high | low | close | volume |
4/21/98 | 179.19 | 185.66 | 173.11 | 178.55 | 59,150,300 |
4/22/98 | 180.88 | 184.04 | 167.41 | 171.79 | 66,366,800 |
4/16/98 | 171.64 | 183.94 | 165.41 | 179.16 | 128,794,200 |
4/20/98 | 175.70 | 183.37 | 171.08 | 176.48 | 62,942,400 |
4/17/98 | 176.56 | 182.77 | 169.31 | 174.77 | 100,258,300 |
7/7/98 | 176.36 | 180.73 | 163.02 | 166.02 | 113,059,400 |
7/21/98 | 170.98 | 178.58 | 162.32 | 168.21 | 101,138,100 |
7/6/98 | 169.25 | 177.66 | 162.82 | 172.27 | 105,819,700 |
7/20/98 | 169.56 | 177.46 | 165.81 | 173.83 | 59,650,000 |
4/15/98 | 170.45 | 176.48 | 164.49 | 170.72 | 64,392,100 |
| (c) 1998 Mecklermedia. Internet.com | |||||
GeoCities (NASDAQ:GCTY) broke out of the market’s mad cow burger phase (or bear burgers, heavy on the salmonella) with its rocketing IPO on August 11, and it has the chance to create an opening for quality Internet IPOs. Not concepts or fish oil magnates but real revenue and reach players.
Lycos (NASDAQ:LCOS) cherry picked fastest-growing Web site (according to Media Metrix) Angelfire in a $133 million stock deal to help shore up its community position. We think the Media Metrix tally could provide a clued-in shopping list for larger players looking to acquire growth.
Here’s the way the week shook up the 50 ISDEX stocks:
| ISDEX ( | 11-Aug-98 | % change | |
The Internet Stock Index | close | from | |
www.isdex.com | 04-Aug-98 | ||
ISDEX | 134.71 | 5.8% | |
ISDEX | 1,485.50 | 8.0% | |
NASDAQ | 1,792.70 | 0.4% | |
DJIA | 8,462.85 | -0.3% | |
Doubleclick | DCLK | $47.50 | 30% |
Earthlink | ELNK | $41.81 | 22% |
PSINet | PSIX | $18.50 | 21% |
Broadvision | BVSN | $23.88 | 21% |
CMG | CMGI | $79.25 | 19% |
Lycos | LCOS | $63.56 | 19% |
Netscape | NSCP | $29.50 | 18% |
Broadband | BBTK | $3.56 | 16% |
Excite | XCIT | $44.63 | 16% |
@Home | ATHM | $46.44 | 15% |
RealNetworks | RNWK | $33.13 | 14% |
CDnow | CDNW | $14.25 | 14% |
Amazon.Com | AMZN | $124.00 | 13% |
CNET | CNWK | $47.38 | 12% |
Concentric | CNCX | $23.25 | 12% |
E*TRADE | EGRP | $28.00 | 11% |
Network | NSOL | $36.06 | 10% |
Sportsline | SPLN | $27.63 | 9% |
Yahoo! | YHOO | $91.38 | 7% |
Intuit | INTU | $47.25 | 7% |
Egghead.com | EGGS | $13.44 | 7% |
Verisign | VRSN | $32.00 | 6% |
Mecklermedia | MECK | $24.25 | 6% |
Open | OTEXF | $14.75 | 4% |
IDT | IDTC | $23.88 | 4% |
Cylink | CYLK | $10.75 | 4% |
CheckPoint | CHKPF | $22.63 | 3% |
Mindspring | MSPG | $41.81 | 3% |
Metricom | MCOM | $8.00 | 3% |
PairGain | PAIR | $13.19 | 2% |
N2K | NTKI | $14.38 | 2% |
CKS | CKSG | $18.50 | 2% |
Infoseek | SEEK | $23.63 | 2% |
Secure | SCUR | $10.75 | 1% |
Axent | AXNT | $22.13 | 1% |
Network | NETA | $45.50 | 1% |
Onsale | ONSL | $24.31 | 1% |
CheckFree | CKFR | $23.75 | 0% |
NewsEdge | NEWZ | $6.88 | -1% |
CyberCash | CYCH | $10.53 | -1% |
Spyglass | SPYG | $10.22 | -2% |
Cyberguard | CYBG | $7.81 | -2% |
Versant | VSNT | $3.56 | -2% |
Security | SDTI | $11.38 | -2% |
WavePhore | WAVO | $9.69 | -3% |
America | AOL | $107.13 | -3% |
VocalTec | VOCLF | $9.25 | -6% |
Security | SFNB | $18.88 | -7% |
Open | OMKT | $14.25 | -11% |
USWeb | USWB | $17.38 | -13% |
TOTAL | 1,485.50 | 8% | |
SIMPLE AVERAGE | 29.71 | 8% | |
| (c) 1998 Mecklermedia (NASDAQ:MECK), The Internet Media Company – Internet.com | |||
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