Internet stocks help boost broader market
Reuters Story - September 08, 1998 20:35
PALO ALTO, Calif., Sept 8 (Reuters) - Investors gave a vote of confidence on Tuesday to battered Internet stocks, helping
online businesses rack up some of the biggest gains as the broader market continued to rebound from last week's drop.
"People are looking to buy stocks that got beaten down and have good growth prospects and the Internet stocks fit that bill,"
said Bob Walberg of Briefing.com in Chicago.
"Last week they got creamed."
While it was the best-known Internet companies like online directory Yahoo Inc. and bookseller Amazon.com Inc. that led the
rally, most smaller Internet businesses showed some gains.
Analysts said they fell last week not so much on industry fundamentals as on fears of a recession. Now that those concerns
have eased, Internet companies are again being selected for their long-term growth prospects.
"I think the thing that had been spooking the market was the fear of creeping recession," said William Blair & Co. analyst
Abishek Gami.
"After (Federal Reserve Chairman Alan) Greenspan's remarks, the market is reacting broadly."
"Anyone who missed buying one of these Internet stocks on the way up -- now is a great chance to get back in," Gami said.
Among Internet stocks, Yahoo was up $9.25 at $84.63, Amazon.com rose $6 to $92.25, Inktomi Corp. gained $13.75 to
$67.50, Infoseek Corp. rose $3.88 to $21 and Excite gained $3.13 to $30. |
