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Technology Stocks : Engage Technologies Inc - (Nasdaq - ENGA) -- Ignore unavailable to you. Want to Upgrade?

To: paulh41 who wrote (734)	10/9/2000 11:47:43 PM
From: Guardian	Respond to of 754

Net Stocks Net stocks bounce back Yahoo gains ahead of quarterly report on Tuesday By Bambi Francisco, CBS.MarketWatch.com Last Update: 5:18 PM ET Oct 9, 2000 NewsWatch Latest headlines NEW YORK (CBS.MW) -- After last week's harrowing sell-off, most Internet stocks bounced back as investors bid up shares of Yahoo and other recently battered issues ahead of the Net bellwether's quarterly report on Tuesday. "The market may get a bit of a bounce prior to Yahoo's report," said Michael Graham, an analyst at Robertson Stephens, suggesting that the bounce would be a reprieve from the incredible selling pressure of late. Yahoo (YHOO: news, msgs) rose $4.50, or 6 percent, to $85.75. But Graham is still cautious and would not be surprised to see more pain ahead this week, notably for ad-supported new media companies. Indeed, his sentiment appeared to be shared among market participants who stayed away from new media names but drove business-to-business stocks and recently pummeled issues sharply higher. Internet Capital Group (ICGE: news, msgs), which holds a stake in a number of business-to-business marketplaces, jumped 27 percent to $14.25 while Priceline.com (PCLN: news, msgs) bounced 17 percent to $6.50. Of course, at the current levels these stocks are trading at, it doesn't take much to move them Making solid advances from a higher stock price, however, were shares of leading Internet names in the B2B sector. Ariba (ARBA: news, msgs) gained $8.94, or 8 percent to $122.69; BroadVision (BVSN: news, msgs) and Vignette(VIGN: news, msgs) ran up 21 percent to $21 and 40 percent to $26.13, respectively. Shares had fallen 30 percent in the past two weeks. Content delivery issues were also bid higher. Akamai (AKAM: news, msgs) raced higher by 21 percent to $43.94. The stock is off 59 percent since it reported second-quarter results on July 25, noted David Readerman, head of Internet strategy at Thomas Weisel Partners. Digital Island (ISLD: news, msgs) popped higher by 19 percent to $17.19. As for the overall market, the Goldman Sachs Internet Index rose 3 percent after declining 3 percent earlier. Merrill Lynch Internet Holdrs rose 1 percent after losing 3 percent earlier. The Amex Internet Index added 1 percent. False alarm? Even though the market appeared to recover, analysts remain skeptical. "We have the potential for another down week," said Graham. Given the slew of earnings warnings, there are still "questionable" stocks with high valuations. The Nasdaq Composite could see another 6 to 7 percent on the downside, where it bottomed during April and May, he predicted. Across the landscape of content names that are supported by advertising dollars, Graham believes there is still some "pain left to be felt" until there is visibility about online advertising growth. On the positive side, that visibility may come along before the end of the year. The market is about halfway through in understanding the magnitude of the advertising slowdown and growth rate going forward, said Graham. There's been a focus on dot-com spending drying up, but we'll likely see big advertising announcements in late November and December. "People spend 15 percent of their day online and only 2 percent of advertising dollars are online," he said optimistically. "That gap has to narrow at some point."