INTERNET GROUPEARNINGS PREVIEW January 4, 1999
SYMBOL(S): AMZN, KBWK, AOL, CMGI, CNWK, DCLK, DRIV, DIALY, EBAY, EGRP, GMSTF, GETY, LCOS, MBRS, NEWZ, NETG
ANALYST(S): BENJAMIN, KEITH;LEVITAN, LAUREN;BARNES, CRISTY;GRAHAM, MICHAEL
RATING: BUY
Download PDF
Synopsis:
The following synopsis is qualified in its entirety by the more detailed information contained in the full research report, including the discussion of certain risks associated with an investment in this security contained in "Investment Risks."
Research dated prior to September 1, 1998 was prepared by an entity that was acquired by BancBoston Robertson Stephens Inc.
We have been very lucky with the sharp and sustained rally among Internet stocks.
As we look to quarterly reporting season, which officially starts January 12th with Yahoo!, we expect to see some near-term peaks in these stocks. We expect investors may pause as they look toward flattish sequential comparisons of the March '99 quarter over the December '98 quarter. We expect a mixed reaction among the stocks, with leaders holding, a few stock emerging upwards, and laggards falling.
With the leaders, AOL, Yahoo!, Amazon, and eBay, we expect the numbers to almost catch up with the stocks, based on expectations of big percentage positive surprises.
Some stocks have seen perception changes regarding competitive positions and market conditions and, as a result, jumped recently. Network Solutions is emerging as a leader in a big market segment, with potentially significant positive surprises. E*Trade has been benefiting from rapid trading volume rates among the stocks. Digital River is defining a new market segment for e-delivery of software. Ticketmaster/Citysearch is leading the local content/commerce market.
A few stocks have languished and could make or beat numbers a bit and perform better, including CNET and Excite. Other stocks may not surprise until Q1, but the stocks could sneak up on us, including SportsLine, Preview Travel, and Getty Images.
We are concerned about some stocks that have followed the pack and may not deliver enough to keep the stocks at current levels. Among those stocks we would include Onsale, N2K and many of the smaller e-tailers.
We continue to recommend Gemstar, which we believe is the leader in on-screen TV guides and is pioneering a new advertising vehicle.
Comments or suggestions? Email your feedback to profedge@etrade.com.
Note that you remain subject to the terms, conditions, and disclaimers specified in the User Agreement.
© Copyright 1998 E*TRADE Securities, Inc. All Rights Reserved.
|
