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.

Strategies & Market Trends : Trend Setters and Range Riders -- Ignore unavailable to you. Want to Upgrade?

To: Susan G who wrote (236)	12/11/2000 6:34:21 PM
From: bobby is sleepless in seattle	Read Replies (2) \| Respond to of 5732

Banking on Net infrastructure, B2B Yahoo sinks on ad concerns; DoubleClick warns By Bambi Francisco, CBS.MarketWatch.com 5:52 PM ET Dec 11, 2000 NEW YORK (CBS.MW) - After a tough start, Internet shares tracked higher with infrastructure and business-to-business names leading the advance. Messaging and e-mail company Critical Path (CPTH: news, msgs) shot up 27 percent to $39.63. Companies that accelerate the delivery of Web pages and support the delivery of rich media content, such as Inktomi (INKT: news, msgs) , Akamai (AKAM: news, msgs) and Digital Island (ISLD: news, msgs) , saw shares leap ahead of Tuesday's Streaming Media West conference in San Jose, Calif. Inktomi and Akamai jumped 17 percent and 13 percent, respectively. Digital Island pulled ahead by 30 percent. In the B2B sector, PurchasePro (PPRO: news, msgs) , which provides a Web-based marketplace for small and medium-sized companies, saw shares run up 22 percent. See full story. Merrill Lynch Internet Infrastructure Holdrs, a basket of leading infrastructure companies, gained 5 percent. Merrill Lynch B2B Internet Holdrs ran up 7 percent. The Goldman Sachs Internet Index (GIN: news, msgs) , which traded in the red in the early going, rose 3.7 percent by the close, after leaping 19 percent last week, its sixth biggest weekly jump ever. Much of the advance came last Tuesday, when investors enjoyed a presidential-election and interest-rate relief celebration. The Net barometer surged 15.9 percent on that day, its biggest one-day jump this year. Yahoo's diminishing fan club But shares of Yahoo (YHOO: news, msgs) and DoubleClick (DCLK: news, msgs) came under pressure on relentless advertising concerns. Yahoo gave up 3 percent to $33.88 after a triumvirate of negative analysts' comments kept worries about Web advertising and valuations alive. After the bell, DoubleClick, a leading online ad-serving company, warned that it would report a loss for the fourth quarter, missing expectations to turn a profit. Shares fell 6 cents to $11.94 ahead of the news. See full story. Yahoo (YHOO: news, msgs) fell as low as $30.63 in the early going after Deutsche Banc Alex. Brown, Robertston Stephens and Wit SoundView took shots at the company. Deutsche Banc Alex. Brown analyst Andrea Williams Rice warned that Yahoo shares could tumble another $20, or 57 percent, from last Friday's close of $34.94. At the level, Yahoo trades at 61.6 times her '01 earnings estimate of 57 cents. But that is 2.9 times Yahoo's estimated growth rate of 20 percent. To that end, Yahoo should trade at 30 times '01 earnings, she said. "We believe that pressure is growing for Yahoo to partner with a media or wireless telecom company, particularly one that could accelerate revenue growth outside the U.S.," said Rice. WitSoundView analyst Jordan Rohan lowered his rating on Yahoo from a "buy" to a "hold," citing "continued deterioration of bulk banner advertising rates from over $2 six months ago to $1 currently." Rice's valuation comments and Rohan's downgrade follows W.R. Hambrecht analyst Derek Brown's warning that Yahoo could miss fourth quarter numbers. Merrill Lynch analyst Henry Blodget shifted his revenue projections from the first half of '01 to the second half of '01. Both Brown and Blodget made their negative comments last week.