Net Sector Mixed in Early Trading Despite Positive Earnings Reports

Microsoft's earnings report was garnering much of the attention in the technology sector and has helped rally the Nasdaq this morning. But a number of Net stocks also posted solid reports overnight, though price action in the companies was mixed, with some seeing profit-taking after running up in advance of their numbers.

Early on, TheStreet.com Internet Sector index was up 9.41, or 1.4%, at 688.85 in early trading.

Net/Tech Indices INDEX CHANGE % VALUE TSC Internet 9.41 +1.4% 688.85 TSC E-Commerce 1.16 +1.2% 100.13 TSC E-Finance --- +0.0% 55 3/4 Nasdaq 44.60 1.7% 2732.70

Among stocks that reported on Tuesday, RealNetworks (RNWK) was down 1 7/8, or 2%, at 101 1/2 despite providing a double-dose of good news. Unlike the majority of Internet stocks, it actually posted a profit of 5 cents, which bested estimates of a 4-cent gain. But a profit had been anticipated and the stock ran up more than 7 points on Tuesday in advance of the report, so losses today were likely coming on profit-taking.

Shares of Copper Mountain Networks (CMTN) were off 7 3/4, or 8%, at 85 despite the company besting estimates. Its 16-cent profit beat estimates of a 12-cent gain. News that the company would release 9.2 million shares next week was likely behind the losses. These shares were previously locked up. US Bancorp Piper Jaffray upped its price target on the stock to 110 from 100, while also raising revenue estimates going out.

Also, Juniper Networks (JNPR) was down 2 5/8, or 1%, at 233 5/16 despite posting a smaller-than-expected third-quarter loss of 4 cents a share, compared with an expected loss of 12 cents a share. The stock also was seeing profit taking after gaining around 19 points the past two sessions.

Excite@Home (ATHM), which met estimates with a 1-cent loss for its third quarter, was up 2, or 5%, at 42 5/8. Gains likely reflected the 220,000 increase in subscribers, its largest quarterly subscriber increase to date. Morgan Stanley Dean Witter reiterated an outperform rating on the stock, writing in a note today that it anticipates the year 2000 to be "a breakout year for the company -- in terms of subscriber growth and revenue." Morgan Stanley Dean Witter has done underwriting for Excite@Home.

Focus later today will be on America Online (AOL), which reports earnings after the close today. It is expected to report earnings of 13 cents a share, with the whisper number of 15 cents. In advance of its report, AOL was up 1 3/8, or 1%, at 116 5/8.

Media Metrix Numbers Show Net Growth Slowing

Media Metrix released its Net usage numbers for September late Tuesday and the estimated number of U.S. Web users increased by 240,000 for the third straight month to 63.4 million from 63.1 million in August. Merrill Lynch analyst Henry Blodget said that the growth numbers were "surprisingly light" given the usual seasonal strength in September. He said the softness may in part be related to the late Labor Day weekend, but it also was "evidence of a trend visible for six months or so: a gradual slowdown in the growth of U.S. Web users."

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