Hesitant Net Sector Edges Up on Strong eBay Earnings
Just when you thought it was safe to get back in the water.
A huge day for technology yesterday, with solid quarterly numbers from most companies, including
eBay
. Stock futures were sharply higher this morning and a strong opening also suggested that the
Nasdaq
was heading for another strong day. But so far, the tech sector has been hesitant to build on those early gains.
TheStreet.com Internet Sector
index was up 14.21, or 1.74%, to 832.77. The Nasdaq was up 9.10, or .25%, to 3720.33. Our own
James Cramer
lists his reasons why the
Nasdaq
has possibly bottomed in a two-part
piece that ran earlier today (just read part two if you're short on time).
eBay was up 1 3/16, or .77%, to 154 3/4, after it
reported solid earnings and announced a 2-for-1 stock split. Earnings of 6 cents a share bested not only the 3-cent estimate from
TheStreet Recommends
First Call/Thomson Financial
, but also whisper numbers of around 5 cents.
Market analysts were universal in their praise for the company.
Morgan Stanley Dean Witter
analyst Mary Meeker gushed on about the company, reiterating an outperform rating and writing that the company appeared to have "lots of upside."
Donaldson Lufkin & Jenrette
analyst Jamie Kiggen reiterated a buy rating and a 6-to-12 month price target of 300 (pre-split). Kiggen wrote that eBay should "outperform much of the Internet sector this year, as profitability continues to ramp."
Among other stocks that reported earnings since yesterday's close,
Razorfish
(RAZF)
was up 11/16, or 3.6%, to 19 13/16. The technology services company reported a gain of 7 cents a share, one penny better than Street estimates.
724 Solutions
(SVNX)
was down 5 5/16, or 10%, to 47 1/16 after it reported a 20-cent loss for the first quarter, far better than the 43-cent loss estimate from First Call.
NetRatings
(NTRT)
was down 5/8, or 3%, to 23 1/2 after reporting a 4-cent loss vs. the 8-cent loss estimate for the first quarter.
Prodigy
(PRGY)
was up 2 1/2, or 25%, to 12 5/16. The Internet Services Provider reported a first-quarter loss of 54 cents a share including costs, versus the 67-cent loss estimate.
ShopNow.com
(SPNW)
was down 1 1/8, or 14%, to 6 13/16, after the online retailer reported a 41-cent loss vs. the 49-cent loss estimate for its first quarter.
CheckFree Holdings
(CKFR)
was up 7, or 22%, to 39 1/2. It reported a 7-cent loss for the third quarter vs. the 11-cent loss estimate.
Fogdog Sports
(FOGD)
was down 1/4, or 6%, to 3 7/8, after besting first-quarter estimates with a 27-cent loss vs. the 30-cent loss forecast.
F5 Networks
was down 15 61/64, or 27%, to 42 3/4, after only matching Street estimates with an 18-cent loss for its second quarter.
