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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (36475)	1/3/2000 12:28:00 PM
From: Les H	Respond to of 99985

RESEARCH ALERT-Merrill sees Web pullback in Q1 NEW YORK, Jan 3 (Reuters) - Merrill Lynch said on Monday it sees a pullback in the Internet sector during the first quarter, but still remains optimistic on leading Internet companies for 2000. -- Given the volatility of the Internet sector, a pullback in the first quarter is likely, especially in shares of business-to-consumer companies, analyst Henry Blodget wrote in a research note. -- It is likely at some point this year that competition, lack of profitability and decreasing returns on new online users in the U.S. market will lead to a shakeout and consolidation in the business-to-consumer sector, the company said. -- For early 2000, Merrill recommends stocks focused on Internet infrastructure and in the business-to-business area. -- Business-to-consumer investments should be limited to stocks that are sector leaders, have strong sequential revenue growth, are gaining market share, and have strong international operations, Merrill Lynch said. -- Among the companies expected to perform well in 2000 are America Online Inc. (NYSE:AOL - news), Yahoo! Inc. (NasdaqNM:YHOO - news), Amazon.com Inc. (NasdaqNM:AMZN - news), CMGI Inc. (NasdaqNM:CMGI - news), Doubleclick Inc. (NasdaqNM:DCLK - news), Homestore.com Inc. (NasdaqNM:HOMS - news), Internet Capital Group Inc. (NasdaqNM:ICGE - news), Exodus Communications Inc. (NasdaqNM:EXDS - news), and Infospace.com Inc. (NasdaqNM:INSP - news), Merrill said.