cbs.marketwatch.com
Internet stocks rise on profit outlook
Analyst sees 'phenomenal' long-term earnings prospects
By Stephanie O'Brien and Bambi
Francisco CBS MarketWatch
Last Update: 5:12 PM ET Feb 23, 1999
Internet Daily
Net Headlines
NEW YORK (CBS.MW) -- Internet stocks climbed Tuesday,
boosted by a positive profit outlook for some high-profile Net
names.
Influential Morgan Stanley Dean Witter
analyst Mary Meeker told her firm's sales
force Tuesday morning that she expects
Yahoo (YHOO), eBay (EBAY) and
Amazon.com's (AMZN) quarterly earnings
to be in-line or better than consensus
expectations.
The analyst said fundamentals continue to
be solid and despite volatility, the
long-term outlook for those stocks is
"phenomenal."
Meeker also said she disagreed with rumors
circulating on the Street that Amazon's
business is flagging.
A Yahoo analyst meeting scheduled for
March 4 could also be a catalyst for the
stock, said brokers who listened to Meeker's
comments.
Among the Net movers: America Online (AOL) rose 1 1/2 to
88. The largest online services provider split its stock 2-for-1,
effective Tuesday.
Yahoo jumped 7 1/8 to 152 7/8, while Amazon rose 8 11/16
to 115 3/16. Shares of eBay gained 3 7/8 to 282 5/8. Lycos
(LCOS) rose 4 3/8 to 94. Infoseek (SEEK) climbed 2 9/16 to
71 1/4. Excite (XCIT) rose 8 7/8 to 102 3/8.
In corporate news, Trimark Holdings
(TMRK) and Broadcast.com (BCST) said
they teamed up to distribute movies over
the Internet.
Trimark will license its library of films for
distribution over the Internet via
Broadcast.com, starting with 50 titles.The
companies will also broadcast first-run
movies, previews and live premieres. The
companies will derive revenue from
pay-per-view, electronic commerce and
personalized marketing, among other
strategies.
"We believe this deal will, for the first time, allow a significant
library of theatrical motion pictures to be streamed on the
Internet," said Mark Amin, chairman and CEO of Trimark, in a
statement.
Shares of Broadcast.com jumped 8 3/16 to 78 1/2, while
Trimark stock rose 1 5/32 to 8 3/16.
In other news, computer chip maker Intel Corp.(INTC) said it
expects annual e-commerce industry revenue to top $1 trillion
by 2002 as 1 billion personal computers connect to the
Internet. See related story.
Internet software maker Inktomi (INKT) also rose, climbing 5
3/4 or 9.6 percent to 65 3/4. |
