Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Olu Emuleomo who wrote (98213)	3/31/2000 5:41:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

They are broken for now. Only ARBA is showing any sign of life. My only regret was not shorting VIGN after I sold it @ 180+ I believe the life in ARBA was a bit caused by the Merril comment today. VIGN is a good firm. It will heal:-)

To: Olu Emuleomo who wrote (98213)	3/31/2000 6:00:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

Internet/e-commerce ? We continue to believe there is long-term upside for the leading Internet stocks. We also continue to believe that the market is transitioning into a more mature phase of growth and that this transition, combined with a massive increase in competition across all internet sectors, will cause a shakeout and consolidation. As this consolidation continues, we believe the Internet spoils will increasingly go to the few, not the many. ? In Q2 and beyond, we would continue to emphasize IPOs in the Infrastructure and B2B sectors, which are less mature than B2C, as well as leading B2C companies that are 1) gaining market share, 2) strong internationally, 3) profitable (or showing a clear path to profitability), and 4) have a clear, defensible value proposition. The growth of advertising, commerce, international, wireless, and interactive TV should continue to fuel strong revenue (and earnings!) growth for the leading companies. ? Similarly, especially in B2C, we would increasingly avoid the stocks of any companies that are losing market share and need additional funding to achieve profitability. The internet tide is not rising fast enough to lift all boats anymore. Moreover, as extraordinarily high returns become a thing of the past, we expect investors to be far less generous in funding companies with dubious business propositions. ? Sector valuations remain extreme by historical standards, and, as a result, rapid changes in sentiment remain the sector?s biggest risk. In Q1, as expected, we have seen a significant pullback across the sector, especially in the B2C names. Also as expected, the industry-leaders have held up better than the 2 nd and 3 rd tier players. ? Our sense is that the leading B2C names will continue to be highly volatile for the next few months and then gradually move to new highs by the end of the year. Given the strength of sequential revenue growth in the Infrastructure and B2B sectors, we expect these sectors to bounce back from their current weakness relatively soon. ? Our core holdings include: America Online (AOL; $65; D-1-1-9), Yahoo! (YHOO; $169 1/2; D-1-1-9), Amazon.com (AMZN; $66 1/2; D-1-1-9), EBay (EBAY; $207; D-1-1-9), Priceline (PCLN; $81 1/8; D-2-1-9), Lycos (LCOS; $64 7/16; D-1-1-9), Homestore (HOMS; $45; D-1-1-9), Doubleclick (DCLK; $96 7/16; D-1-1-9); Inktomi (INKT; $178 3/8; D-2-1-9), Exodus (EXDS; $144; D-1-1-9), and Infospace (INSP; $130 1/4; D-1-1-9) in Infrastructure, and Internet Capital (ICGE; $93 25/64; D-2-1-9), VerticalNet (VERT; $151; D-2-1-9), and Ariba (ARBA; $220; D-2-1-9)(covered by Chris Shilakes) in B2B. (H. Blodget) Bulletin United States 31 March 2000 Investor Support Group Intra-Day Special Note Internet/e-Commerce Merrill Lynch & Co. Global Securities Research & Economics Group Global Fundamental Equity Research Department RC#11209124