To: Bill Harmond who wrote (77851 ) 9/20/1999 9:10:00 PM From: Glenn D. Rudolph Respond to of 164684
EW YORK, Sept 20 (Reuters) - No. 2 Internet network Yahoo! Inc. YHOO.O gained ground against leading Web media company America Online Inc. AOL.N in August, Internet market research group Media Metrix Inc. said in a monthly survey released on Monday. Analysts interpreting the data said AOL reached 67 percent of the Internet audience, roughly flat compared with July, while Yahoo gained two percentage points to 64 percent of the Web audience. Yahoo widened its lead over Microsoft Corp. MSFT.O Internet sites, which also remained flat, with 55 percent of Web users. Lycos Inc. LCOS.O dropped from 48 percent of the Web's audience in July to 47 percent in August. Media Metrix is one of several firms that track the Web surfing habits of home and office computer users to determine monthly rankings of the top 50 Internet destinations. The survey extrapolates from around 50,000 users to judge the habits of millions of mostly U.S. Internet users. It is relied on by Wall Street to determine which sites are drawing the largest advertising and shopping audiences -- and by extension is used to value these fast-growing stocks. "Yahoo is is now more than 8 ... points ahead of Microsoft," Merril Lynch analyst Henry Blodget wrote in a note to clients. He said the time Yahoo users spent on the site and number of Web pages viewed -- key figures online advertisers pay for -- are still among the highest in the industry. Yahoo shares rose 5-1/4 to close at 168-3/8 on the Nasdaq stock market Monday. Shares of AOL fell 3-5/16 to 83 on the New York Stock Exchange. Lycos closed down 11/16 points at 43-3/4. Amazon.com Inc. AMZN.O, the online retailer, moved up a notch to No. 7 from No. 8, surpassing Time Warner Online TWX.N. Nonetheless, Amazon shares closed off 1-1/16 at 62-3/4 on Nasdaq. "Amazon.com continued its transformation into a, "shopping portal," which we believe could generate significant advertising and e-commerce revenue," Blodget said. In his own note to clients, Bear Stearns analyst Scott Ehrens pointed out that there was little movement among the bigger names, aside from the flip-flop in Time Warner and Amazon's positions. Lower down the listings, Ehrens highlighted a gain by About.com Inc. BOUT.O, the online information guide company, from 17th place to No. 15, a move made without significant acquisitions. "Given this strong performance, we believe that shares of About.com will rise (potentially sharply) over the next few days," he said. Shares of New York-based About.com closed up 1-11/32 at $35 on Nasdaq. Ehren also cited Ticketmaster Online -- CitySearch Inc. TMCS.O the No. 6 most visited shopping site which increased the number of visitors to its site in August to 6.7 percent of the total Web audience from 6.3 percent in July. He said it could see further growth in its reach numbers later this year, due to its proposed acquisition of Microsoft's Sidewalk.com local entertainment and city guide listings. "We believe that once this acquisition is completed at the end of the year and the Sidewalk numbers are rolled into the TMCS property, its reach will most likely grow to double-digit percentage levels," Ehrens wrote. 859-1700)) REUTERS Rtr 17:32 09-20-99