YHOO TRADING DOWN FROM 402 CLOSE
REUTERS
Rtr 17:04 01-12-99
Copyright 1999, Reuters News Service
NEW YORK, Jan 12 (Reuters) - Shares of computer chip maker
Intel Corp <INTC.O> rallied in after-hours trading after the
company posted fourth quarter earnings that were far higher
than analysts had forecast.
Web portal company Yahoo! Inc <YHOO.O>, which also reported
results that topped Wall Street estimates, fell in after-hours
activity.
Intel's net income rose to $2.1 billion, or $1.19 a share,
up 18 percent from a year ago, when it earned $1.7 billion, or
98 cents a share. The latest results beat the $1.07 a share
expected by Wall Street analysts surveyed by First Call Corp.
Intel shares climbed to 139 in trading on Instinet, up from
a closing price of 135-9/16 and reversing nearly all of a
4-3/16-point decline during what was overall a weak day for
technology issues.
Yahoo shares slipped to 395 in after-hours trading,
extending a regular session decline of 12-1/2 points to 402.
Pro forma net income at Yahoo came to 21 cents per diluted
share, ahead of the First Call estimate of 16 cents.
Earnings at Yahoo, which also declared a two-for-one stock
split, amounted to 16 cents a share after factoring in
acquisition-related charges and other items.
NYSE session one after-hours volume was 1,759,900 shares
versus 1,452,000 shares on Monday. Second session volume
totalled 8,987,676 shares versus 5,940,229 shares on Monday.
REUTERS
Rtr 17:25 01-12-99
Copyright 1999, Reuters News Service
Internet stocks fall from frothy levels
By Daniel Bases
NEW YORK, Jan 12 (Reuters) - Caution crept into the
Internet sector of the stock market Tuesday, where rosy
e-commerce sales reports from the holiday shopping season and
enthusiastic individual investors pushed prices sharply higher.
Major names in the burgeoning industry took part in a
broad-based sector sell-off ahead of quarterly earnings reports
that start trickling out this week.
The majority of Internet companies are operating with
negative earnings. However, investors are placing their bets
that future returns in the untested industry will vindicate
such risk-taking as prescient.
"I think people are getting cautious because the best news
for the sector, the fourth quarter, which was a monster
quarter, is behind them and you've got to expect some profit
taking," said one senior technology trader at a major wall
street brokerage who requested anonymity.
Internet media company Yahoo! Inc. <YHOO.O> reports fourth
quarter and fiscal 1998 earnings after the market closes on
Wednesday afternoon.
First Call's fourth quarter and fiscal year 1998 consensus
estimates for Yahoo! are $0.16 and $0.43, respectively.
"In Yahoo's case, I think management has some reservations
about where the stock price is right now. Management thought
the stock might have been ahead of itself about 150 points
ago," said Chris Tuttle, technology analyst with SoundView
Technology Group.
"But as we get the reality of the numbers, they will be
good. But expectations have gotten unachievable," he added.
Yahoo!'s stock has been on a roller-coaster ride Tuesday,
starting out with gains, only to plunge to a loss of more than
30 points. It is currently down $9.50 at $405 after a $71.75
rise on Monday.
Amazon.com <AMZN.O>, the Internet book, music, and video
retailer, was off $14.50 at $170.125, cutting back more than
half of its $24.375 gain on Monday.
America Online Inc. <AOL.N>, the world's largest Internet
service provider, was down $8 at $157.
Warburg Dillon Read lowered its rating on Netscape
Communications Corp. <NSCP.O> to a hold from strong buy due to
the appreciation of its price in relation to its pending
purchase by AOL. Netscape's stock was off $2.44 at $66.50.
IPO sensation, eBay Inc.<EBAY.O>, the online auction
company, was off $20.625 at $270.875, while its peer, uBid
Inc.<UBID.O> was off $10 at $104.50.
There were some bright spots, however. Data Broadcasting
Corp. <DBCC.O> was up $1.19 at $39.625. Data Broadcasting and
CBS Corp <CBS.N>, are spinning off their online financial news
joint-venture, Marketwatch.com later this week.
REUTERS
Rtr 16:15 01-12-99
Copyright 1999, Reuters News Service
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