Internet issues fell throughout Wednesday, despite two
high-profile companies rising after reporting better than expected earnings.
internet.com’s Internet Stock Index (ISDEX) was off 16.80, or 1.93 percent,
to 855.20, the Nasdaq Composite dropped 97.50 to 4069.90 and the Dow Jones
industrial average gained 3.10 to 11032.99.
VerticalNet and Vignette did provide some positive surprises. Shares of Vignette (VIGN)
rocketed 17-1/2 points higher to 234. Henry Nada, senior analyst at U.S. Bancorp Piper Jaffray reiterated his “strong buy” and raised the price
target from $200 to $400. Nada sited “exceptional market fundamentals” and
“key partnerships” for his revised target. “In our view, Vignette should be
a core holding for investors wanting direct exposure to the e-business
economy” wrote Nada in a note to clients.
The good news led Robertson Stephens to reiterate its “buy” rating.
Donaldson Lufkin Jenrette also reiterated its “buy” and said the stock
should be a core part of an Internet investor’s portfolio.
Also, the company late Tuesday purchased Internet software firm NetZip and
announced a 2-for-1 stock split.
That prompted DLJ to raise its six to 12-month price target to $280 from
Losers included Yahoo! Inc. (YHOO)
, down 17 to 328-9/16, Verisign Inc.
off 7-1/16 to 189-13/16, Infospace.com
falling 9-1/2 to 140 and Check Point Software Technologies (CHKP)
down 17-3/8 to 262.
Commerce One Inc. (CMRC)
was off 14-7/8 to 185. The electronic commerce software provider reported a
fourth-quarter loss of 40 cents a share, almost double the year-ago figure.
Analysts had only forecast a 15-cent loss.
F5 Networks (FFIV)
fell 19 points lower to 114-1/2, despite reporting better-than-expected
quarterly results. The company posted a fiscal first-quarter profit of $4.2
million, or 18 cents a share — 4 cents better than expected.
“name-your-price” concept to Asia.
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