Gilder Effect Pushes Exodus, Cypress 14% Higher

Exodus Communications (EXDS) isn't slated to report earnings until after Thursday's close, but Thursday morning investors decided they'd already heard the good news from a technology seer.

Gildered Cypress, Exodus rally

Shares in the Internet hosting firm were up $4.38 in the afternoon to $38, a 13% rise. The stock rose as much as 19% in morning trading after pontificator George Gilder issued his monthly Gilder Technology Report newsletter, which discussed Exodus favorably and added the company to Gilder's "Telecosm Table." That's a list of what the futurist calls "ascendant technologies" and the companies that Gilder thinks are leaders in the area.

Gilder insists he isn't trying to be a stock-picker with his newsletter -- in fact, the table contains a disclaimer stating the Telecosm Table isn't a model portfolio, and that companies appear on the list "only for their technology leadership, without consideration of their current share price or the appropriate timing of an investment decision."

Yet not everyone in Gilder's camp is on the same page; the online subscription form for his report, which is co-published by Forbes Magazine, exhorts would-be subscribers to the $295-per-year newletter, "Profit from the biggest investment opportunity of all time. Buy the right technology stocks with the advice of world renowned futurist, George Gilder."

Given his early cheerleading of eventual market highfliers such as Qualcomm (QCOM), Gilder has gained fame as a winning stockpicker, and his monthly picks have moved stocks in the past, though his luster has faded somewhat with the decline in the tech market.

The other stock added to Gilder's ascendant technology list, Cypress Semiconductor (CY), was up 14% Thursday. The company released third-quarter earnings Wednesday evening that beat analysts' estimates.

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