Internet stocks jump as investors look to earnings
NEW YORK, April 26 (Reuters) - Internet stocks helped boost
the overall market Monday morning, as investors optimistically
looked toward earnings reports due this week from some leaders
in the industry.
American Online Inc. <AOL.N>, online auction pioneer eBay
Inc. <EBAY.O> and Internet retailer Amazon.com Inc. <AMZN.O>
are all slated to report their results this week. Analysts said
the three companies are being watched for indications of
overall performance in the fast-growing sector.
"AOL in particular is the bellwether for the Internet
industry as a whole, their results are a big market event for
the week," said David Levy, an analyst at ING Barings.
The American Stock Exchange's Internet Index <.IIX> jumped
3.93 percent to 357 in early trading, outpacing a 2.11 percent
gain in the technology-laden Nasdaq Composite Index.
Big movers included Priceline.com Inc. <PCLN.O>, soaring 27
points to a new high of 115 after it announced that more than
one million people had used its services during its first year
of business. Also, three Wall Street firms initiated coverage
of the company.
eBay shot up 13 points to 213-1/8 after it announced it had
agreed to buy the venerable California auction house
Butterfield & Butterfield for about $260 million in stock.
In addition, traders said Wall Street was focused on the
upcoming earnings reports in the group.
Beside watching for the bottom line earnings results from
these companies, investors are expected to focus on revenue
growth.
Analysts said investors will look to revenues to show
whether these companies' aggressive investments in their growth
is paying off.
"Everyone has their own way of interpreting Internet
companies, a lot of it seems to be like reading tea leaves,"
said Peter Coolidge, senior equity trader at Brean Murray & Co.
eBay is scheduled to report first quarter earnings after
the close of trade Monday, with analyst consensus estimates for
the company of $0.02 per share, according to First Call.
America Online, the world's largest Internet service
provider, is slated to report its fiscal third quarter results
Tuesday, with analysts consensus estimates of $0.09 per share.
Shares were up 9 at 156.
Amazon.com's <AMZN.O> first quarter earnings are expected
Wednesday, with a consensus estimate of a loss of $0.29 per
share. Amazon was up 2 at 212-1/8.
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