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Technology Stocks : Exodus Communications, Inc. (EXDS) -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (1623)	12/9/1999 10:40:00 AM
From: William F. Wager, Jr.	Respond to of 3664

Blodget report... Exodus Communications Inc. Dow Jones Newswires -- December 8, 1999 DJ Merrill Starts Exodus Commun At Near-, Long-Term Buy NEW YORK (Dow Jones)--Merrill Lynch & Co. analyst Henry Blodget initiated coverage of Exodus Communications Inc. (EXDS) with near- and long-term buy ratings Wednesday, and the stock jumped as much as 14%. In a research note, Blodget said Exodus, which hosts and leases software for businesses from its data centers via the Internet, is a "category killer." He estimated the company has a 20% share of co-location Web hosting market revenue and 38% of total global data center square footage in 1999. Blodget sees its addressable market growing 112% annually to $18 billion by 2003, while Exodus should grow at 118% a year. He estimates fourth-quarter revenue of $85.8 million and a loss of 37 cents a share, excluding goodwill and exceptional charges. The stock earlier rose as high as 165 1/8, past the previous all-time high of 144 1/2 set Tuesday, when it closed up nearly 17%. It was recently up 13, or 9%, at 157 1/2 on volume of 1.7 million, compared with a daily average of 2.9 million. Exodus shares have skyrocketed from their initial public offering price of $15 in March 1998 and trade at 19 times forecast 2000 revenue - "what is likely to be an unsustainable multiple over a period of several quarters," Blodget wrote. But he set a 12-month price objective of $200, or 27 times his forecast 2000 revenue. - Marcelo Prince, Dow Jones Newswires, 201-938-5244 --Bill