ABOV expected to beat... Read this:::
And an ABOV mention here with EXDS:
cbs.marketwatch.com.
Internet stocks rocket higher
Investors cheer Beyond.com, CNet, Exodus
By Bambi Francisco, CBS MarketWatch
Last Update: 12:09 PM ET Apr 22, 1999
Internet Daily
Net headlines
NEW YORK (CBS.MW) -- Another batch of surprisingly strong
quarterly results from Net companies kept enthusiasm intact and the
buying apace for Internet stocks Thursday.
The Goldman Sachs Internet Index jumped 4.1
percent on the day and is now ahead for the week,
recouping all of Monday's losses.
The Amex Internet Index gained 3.3 percent.
Positive results
Shares of CNet (CNET: news, msgs) rocketed 21
5/16, or 18 percent, to 141 1/16 after surging 14
percent on Wednesday following the Internet and
media company's report of record revenues and its
announcement of a 2-for-1 stock split.
CNet posted a profit of $3.4 million, or 9 cents a
share, on revenue of $19.6 million. Danny Rimer,
an Internet analyst at Hambrecht & Quist,
reiterated his "buy" rating, citing CNet's ability to
drive transactions to the retailers who sponsor its
Web sites and its lead-generation programs. See
full story.
Exodus (EXDS: news, msgs) charged higher by 13 1/2, or 16
percent, to
97 1/2 after jumping 14 percent on Wednesday. The Internet
infrastructure company said first-quarter losses widened to $22.2
million
on revenue of $30.1 million. Still, the top- and bottom-line results
beat
expectations. Goldman Sachs raised its price target by 59 percent
to
$135 and upped its top-line estimate by 13 percent to $165 million
for the
year.
Meanwhile, William Klein, a technology analyst at Wasserstein
Perella, is
keeping his "hold" rating on Exodus. "You have to be impressed
with the
way they're executing," said Klein, "but beyond a couple quarters
there
will be competition from major datacommunications companies,
such as
Qwest Communications (QWST: news, msgs)."
Beyond.com (BYND: news, msgs) shot up 8 3/16,
or 30 percent, to 35 5/16 after inching up on
Wednesday ahead of the company's announcement
of better-than-expected first-quarter results.
The online computer software reseller reported that
quarterly sales soared 208 percent to $19.1 million,
while losses were narrower than anticipated.
Beyond.com posted a quarterly loss of $18.8
million, or a loss of 64 cents a share, compared
with a loss of $2.2 million a year ago. Keith
Benjamin, an Internet analyst at BancBoston
Robertson Stephens, maintained his estimates but
said business trends remain strong into April, "supported by increased
demand for tax-related and virus-protection software."
Vignette (VIGN: news, msgs) ran up 4 1/2 to 88 after the provider of
Internet relationship management software and services reported
first-quarter results that came as a positive surprise to the Street. Vignette
posted a loss of 28 cents a share, while sales surged 306 percent to $9.1
million. Vignette went public in February at $19.
Thursday earnings
Another recent Net IPO, Abovenet (ABOV: news, msgs) surged 4
1/2 to
123 1/2. The outsourcer of data-center applications, such as Web
hosting
and managed services, is expected to report a quarterly loss of 47
cents a
share for its fiscal third quarter when it releases results after the
close
Thursday.
Its report will come just a week ahead of Abovenet's $492 million
follow-on offering, in which the company will be selling 4 million
shares to
the public. Four months ago, the company debuted at $13 a share.
Analysts expect a positive surprise, citing the company's ability to
keep up
with larger rival Exodus by winning key clients such as
DoubleClick
(DCLK: news, msgs).
Digital River (DRIV: news, msgs) added 1 7/16, or 3.5 percent, to 42
7/16. The online seller of software is expected to report a first-quarter
loss of 29 cents vs. a negative 14 cents in the year-ago period and a
26-cent loss in the prior quarter.
Network Solutions (NSOL: news, msgs) advanced another 9 5/8, or 11
percent, to 101 5/8 after a staggering 53 percent run-up on Wednesday.
The pioneer of Web addresses, or domain names, reported a 14-cent
profit for its first quarter, double what it earned a year ago and 2 cents
better than the consensus expectation. Quarterly sales rose to $38.1
million, also topping estimates.
OpenMarket (OMKT: news, msgs) edged up 5/8 to 13 1/2. The Internet
commerce software company is expected to report a loss of 14 cents per
share for its first quarter vs. a loss of 18 cents a year ago and a loss of 12
cents in the previous quarter. The company has a history of meeting or
beating expectations, according to First Call. Quarterly sales are
expected to be $14.2 million
Online brokers cool down
Shares of most online brokers slipped Thursday after back-to-back gains
brought the group up 6.5 percent for the week.
Ameritrade (AMTD: news, msgs), National Discount Brokers (NDB:
news, msgs), Siebert Financial (SIEB: news, msgs) and J.B. Oxford
(JBOH: news, msgs) were lower. Knight/Trimark (NITE: news, msgs)
was flat.
E-Trade (EGRP: news, msgs) and Charles Schwab (SCH: news, msgs),
though, rose. On Wednesday, Schwab said its customers experienced a
slowdown in service but that it continued to execute transactions, albeit on
a delayed basis. See full story on Schwab's difficulties and our report on
the Securities and Exchange Commission inquiry into e-brokers' tech
glitches.
Next week's earnings
America Online (AOL: news, msgs) added 8 1/4,
or 5.8 percent, to 151 after Wednesday's 10
percent gain helped it recoup all of Monday's
pummeling.
AOL reports third-quarter results April 27. The
First Call consensus is a 9-cent-a-share profit,
more than double the 4-cent profit recorded a year
ago and unchanged from the previous quarter.
Many analysts expect the company to deliver a
positive surprise. AOL has beaten estimates by at
least a penny a share in the past four quarters.
DoubleClick (DCLK: news, msgs) moved up by 5
13/16 to 147 1/2. The company also reports first-quarter results on April
27. Analysts expect a 13-cent loss vs. a negative 16 cents in the year-ago
period. Quarterly sales are projected to be $18.5 million, up from $13
million last year but down from $29.1 million in the final three months of
1998. After Wednesday's huge point gain, DoubleClick shares were up
2.6 percent for the week.
EBay (EBAY: news, msgs) kicks off next week's earnings blizzard. The
online auctioneer is set to report a first-quarter profit of 2 cents a share vs.
a penny profit a year ago and 2 cents in the prior quarter. Quarterly
revenues are expected to jump more than fourfold to $25.3 million,
compared with $6 million last year and up from $19.5 million in the
previous quarter. EBay has beaten expectations by one penny for the past
two quarters, according to First Call.
Amazon.com (AMZN: news, msgs) rose 6 3/8 to 185 5/8. Amazon
reports first-quarter results April 28.
Of note . . .
Lycos (LCOS: news, msgs) gave back some of Wednesday's 37 percent
gain, slipping 5 1/4, or 5.2 percent, to 96 1/4. On Wednesday, the portal
said it had "surpassed the Yahoo sites to become the most-visited hub on
the Web." Lycos cited a Media Metrix report indicating that its audience
reach hit 51.8 percent last month. There are concerns, however, as to the
accuracy of such traffic measurement.
Yahoo (YHOO: news, msgs) jumped 9 1/8 to 184, bringing it within 5
points of where it began the week. Jonathan Cohen, an Internet analyst at
Wit Capital, started coverage with an "outperform" rating.
AtHome (ATHM: news, msgs) advanced 5 9/16 to 147 1/2. AtHome's
proposed merger partner, Excite (XCIT: news, msgs), added 2 1/8 to
139 1/8.
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