How Low?.... QXL.com Shares Up 8.6% On Lycos-Europe Tie-Up >QXLC
LONDON (Dow Jones)--QXL.com PLC (QXLC) shares are up 8.6% Monday, after the
company said it has signed a partnership agreement to provide auction
services for Lycos-Europe NV (N.LYC).
"This gives QXL a fantastic tight distribution channel with a lot of
viewers," said Peter Misek, an Internet analyst with Chase H&Q. He noted
Lycos sites are now consistently among the top five European Internet
properties in terms of audience numbers.
"This is a good link up for all parties," agreed Peter Bradshaw of Merrill
Lynch. "QXL will get traffic driven from the Lycos site, and there's good
volumes of traffic there," he said.
At 0915 GMT, QXL shares were up 6 pence to 76 pence, and they briefly traded
as much as 20% higher to 84.25 pence in the wake of the news.
But Chase's Misek said there's still room for further improvement in the
share price. "Over the last few months (QXL's share price) has been beaten
down by analyst downgrades and a public perception that the threat of eBay
has destroyed QXL," said Misek. "That's probably overdone, especially if you
look at what QXL is doing in wireless, and with multiple languages."
QXL said Monday that it will become Lycos' premier auction partner for its
most prominent brands including Lycos and Tripod in the U.K., Germany,
France, Italy, Spain and the Netherlands. It expects additional countries
will be added to the deal.
-By Karen Chan, Dow Jones Newswires; 44-20-7842-9269;
karen.chan@dowjones.com
(END) DOW JONES NEWS 07-31-00
05:27 AM
*** end of story *** |
